The coin you received would have been classed as “Grade C” at https://www.chards.co.uk/gold-sovereign-secondary-market-grade-c/3351
Most dealers will have a threshold when it comes to condition of bullion coins.
At Chards, ours is one we have consistently used for almost 60 years. We have noticed that many newish dealers, including scrap gold buyers, jewellers, and pawnbrokers, appear to operate a very low threshold for bullion coins.
Price comparison of “our choice” secondary market bullion sovereigns is often not a fair like-for-like comparison, because of our quality threshold standards compared with most of our competitors. We often get to see sovereigns offered to us by people who have originally bought them elsewhere. These often include damaged, scratched, highly polished coins, mainly ex-jewellery, and also fakes. We usually ask owners/sellers where they bought them from, and a high proportion name a small number of apparently reputable sources.