i got this in a lot a while back and it was marked 'Dug Coin'. is that a reference to the pitting, or do they mean dug up out of the ground?
It means that it was dug-up from under the ground. It is interesting that some Civil War collectors are not interested in prestine items because they "don't look dug".
It is pitted from the corrosion that came from being buried, but the cleaning cleaned off the corrosion leaving pits behind. One of the dangers of any kind of cleaning on older coins.