Looks like it is post-mint damage to me... maybe it spent some time in a clothes dryer and caused some major wear?? I'm not an error expert though, so I could be wrong.
If it was ground upon, the cladding wouldn't be there. The cladding is only missing along the rim. The printing on the left side appears almost smeared. Date code is partially missing, but cladding still there.
A grinder can move the head of FDR towards the rim? Compared to another dime, the potrait is moved towards 1 o'clock. All the detail in the image is pretty much missing, and you can see a ring around the inside on the field. Am I the only one that can see that?
It was damaged by a grinder, as suggested. A grinder can move metal just like that. I've also seen this kind of damage done with a buffer and heavy polishing compound. In any case...it's damage. Thanks, Bill