It has clearly been dipped and retoned - but the secondary toning looks legit. I can see why they might be hesitant though.
Yes, I'd say that it's secondary toning after a dip, but it's still okay. When I was sending in coins for grading when I was dealer, I used to get "a gift," a few coins that were properly graded and "a head scratcher." I think they wanted me to pay them again, but I never did. I would send it to "the other guys" if I thought they were wrong. If it flunked again, well, stupid me, , but usually it didn't.