Those screws are hard, not prone to galling damage. It looks like an insignificant portion of it has either got chipped off, or is a manufacturing defect.
Since your lock nut runs smoothly on it, I would not hesitate to use it as is. That would be a better choice than replacing with an aftermarket one, or one from another engine which may not have as nice of a ball end as yours has.

1952 5-window - return to "as built" condition | 1950 3100 with a 235 and a T-5 transmission