Lamination errors happen in solid alloys so plated coins wouldn't really experience them, I assume. The pics are a bit hard to discern, but it looks like
PMD by being heavily scraped against something, especially since the "grease" on the front looks more like a lot of scratches obliterating the detail, and there are heavy scratches elsewhere as well. The cracks in the plating seem to possibly have formed from exposed zinc rotting underneath the damaged surface.
So count me in for damage, but if anyone thinks it's actually an error, chime in.