No. Intentionally damaged. You can see the circular lathe marks. Someone was mabe trying to create a gimmick quarter like a 2 heads coin.
1 - it is a quarter 2 - not an error. as mentioned, it's the outer shell half of a magicians coin. The inner part probably fell out and was lost. at least that's my guess as I didn't make it not lose the other part.
i have a few two headed quarters and nickels, and i can say from experience that if you leave one in your pants pocket an it goes thru the wash it comes out in two pieces, only a drop of glue holds the two pieces together, i retrieved the half from wash like the OP's but the other part is lost in the washer somewhere and will be retrieved the next time washer gets serviced...