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It looks to me more like someone took a pencil eraser and scrubbed parts of the obverse, so should it be "damaged"
Damage is for actual physical damage to the coin eg metal missing, carvings, really bad hits on it ect.
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Or it should just be "Improperly cleaned"? Does ICG think this is a proper cleaning method?
Cleaned is cleaned. NGC uses improperly cleaned, PCGS just uses cleaned, ANACS just uses cleaned now, I assume ICG just does the same as the others and NGC is the outlier for how they describe it. There's really no reason for any distinction to be made between cleaned and improperly cleaned, properly cleaned you wouldn't be able to tell and it would straight grade.