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I just checked out a few M1 reviews.  Of course, a case sent out for review is likely to be cherry picked.  Nonetheless, I see those circular grooves around the studs.  Some are more and obvious and some are less and minimal bordering on none.  So, the marks are part of the process and you have to accept it. 

If those reviews are used as reference, I have to say your particular M1's circular grooves have to be on the lower end of the spectrum.  Now, whether or not this still falls into the acceptable region of quality control, I have no idea.  But, if a finger can be cut by sliding over the grooves, then it has to be on the borderline of rejection.  (Maybe, the guy who did the job on that day had a bad day?)


Also, when you said 'small metal pieces are breaking off from the panel', you mean the part (in pic 1) along the panel edge?  If so, I agree that this is an imperfection that should not be there, especially considering the M1 is a 'boutique' case.