1963 D Lincoln Memorial. Struck Through? Or?

My thought is that your second idea was the correct one—this looks like a lam to me too.

Ditto lam

@Rob, I see like a pattern of letters. Near rim it is exfoliation. The rest made me thing if it is not the punched quality of the pre-roll raw material?!!. I know the pre-rolls was each one identify in that time by been stamped (punched). If so when the final rolling process start, is normal to deform and exfoliate. Looking at the rim we can see that was before the that process was start. For me is clear was happened before milling.

We will see other opinions also.

Thanks Silvio you're right there's something that resembles letters or numbers.
Through the scope one looks like B or 3 another maybe couple Ys?
When taking a picture they look raised everything is backwards. Incused is raised and vise versa.
I can't figure out how to stop that with camera. Anyone have an answer?

Coop. Thank you also. That area that's coming loose has the same sorta design as the rest on that side. On the other side that looks like maybe letters or numbers there's a few small ones between them.

So that cold item was on it then did the hot metal flowed over it?
Does that explain the peeling? Wonder if/what it looks like under the flakes?

In order to see exact the representation of this ex-foliation here are three ways (like is use in forensic)

1. Talk (baby powder) or leg powder
2. Very expensive: pollen (lat. name) = the powder from flowers collected by bees
3. Foamily danger!!! Use of the women's facial powder make-up

You use those powders with the face make-up bros.

Good luck.

sure looks like a lam to me (even without all that make-up)