Still having problems seeing it close enough. Could be a planchet flaw. Clipped planchet? Sorry. Not sure what to call it. Could it be damage from after it was made perhaps? Awaiting more suggestions from the others....
I don't think it's an error, I think it's PMD, someone made it that way! Look at this one on the bay, looks round to me! https://www.ebay.com/itm/236912613996
Look at this image, how can this be PMD and the rim is clean, no damage there also,I think it is related to collar error.