I have this dime and don't know what to make of it; its smaller than a regular dime and thinner and obviously missing the copper layer the edge is reeded is this an error? if so what kind?
Yes to Environmental Damage. I metal detect and have found many clad Dimes and Quarters with affected Clad Layers due to exposure to sand, soil, dirt, seawater, freshwater, weather. It can also affect the surface of Nickels. Here are some examples of Quarters and Nickels -
I think there must be something more going on than just environmental damage. Simple environmental damage doesn't explain why it only weighs .7 g. It has lost two thirds of its weight.