Yes. Prior to the mid '90s coins that were put into the annual mint sets were just pulled from the hoppers of the regular business strikes that were being struck for use in circulation. So hits and contact marks are extremely common on mint set coins from those years.
IMO the spotting on the reverse is what pulled it down to 65fbl. GENERALLY a Franklin with that sort of toning, luster and hits will get a PCGS 66fbl IMO.