My first stainless Luger was purchased some years ago, just bought it, as was new to the Luger procurement methods. Looked fairly ok, had some wear on the toggle ramps, but otherwise to me.........ok. So it came home with me.
The sear pin area showed this anomaly. So I ended up with a set of fairly expensive parts that I have to admit came in handy over the years for fixing some vintage Lugers.
One can see where the metal around the hole yielded gradually over time, probably somewhat to design, or probably moreso, overly hot loads.