It could be damage. Or maybe the die struck the coin through a thin cloth or something. Hard to tell from pics
Die deterioration. Late stages of the dies life. The devices can appear mushy and the striation lines(metal stress) are more prominent. The coin your showing also has some wear that has contributed to its current form. Here is a 1970 dime I pulled from a mint set. The date, liberty, and IGWT are all mushy and the stress on the die is visible in the field.
