The area the initials would be in looks different than the rest of Lincoln's arm. It's not rounded but rather pushed up and sharp looking on the edge. This gives me the impression that the coin has been damaged by removing the initials.
I borrowed a loupe from a friend it appears to have been struck by another coin edge in that area, with the loupe you can still see the V. I definitely need to purchase a loupe.
They picked a strange spot to add back the initials. Most initials are in a flat field. Worn or filled dies will hide them.
