Found This Coin In A Small Collection Of Colonials; Can't ID

No idea really. First thought was a crude copy of a Connecticut?

So why did they make them look so worn then? What is some form of deception or counterfeiting?

Short answer is yes. Back then there was a shortage of coins and many people "jumped in" and struck some of their own coins. Many coins circulated not based on values marked on them but based on their composition and size. Many people were illiterate but they still did not want to accept a counterfeit so the coiner would make his coins with designs that resembled familiar designs bor would make them appear to be heavily worn to give them an "air of legitimacy" because they looked like they had a long history of being acceptable. They looked like a lot of people had used them.

An example of how not looking old can work against a coin was the Randell hoard large cents a few thousand uncirculated large cents found in the 1860 were rejected when the owner tried to use them. Perfectly good US coins were rejected as counterfeits because "Coins that old couldn't look that new". Eventually he had to sell them off at less than 90 cents on the dollar.