Probably was, long ago, but I would deem it “market acceptable”. (Not that I’m much experienced in the market for stuff like this.)
Sometimes rarity lowers the bar for “market acceptable.” If this quarter were dated 1805, 6 or 7, it would not get a straight grade IMO.
Sometimes I get the impression PCGS wants to keep their rare stuff more harshly graded to keep the population of their graded stuff lower to protect their registry people. But I can't say that is a fact. I do think they are laxer on general fodder than the highly valuable stuff though. The high dollar stuff seems to get extreme scrutiny.
Yes, I learned that when I saw how PCGS graded the King Farouk 1933 double eagle MS65, despite a significant scuff on Liberty’s leg that would’ve held back any mere mortal coin.