Toning can make a pig look like a beauty queen, and vise verse. So, yeah, it probably is a 65 worthy of a CAC.
I think it looks worlds better then this Franklin of mine - https://www.cointalk.com/threads/gtg-1957-franklin.312548/
It’d be more attractive in person as that toning photos terribly, lots of people still wouldn’t say that’s attractive though. But really a 65 is a common grade for that
It’s likely a solid 65 (maybe it’s even undergraded if one would strip away the toning) and that is why it received the sticker. I have seen other coins with this look receive the sticker. While I don’t necessarily like the coin (and many others probably don’t either), by the standards of CAC it fits the grade.
As part of a large lot of coins. I've seen a very worn AG 03 common date Barber dime in a slab with a CAC before.