Davey, I agree that the scabbard has been painted. It almost looks like edge dressing.
We used to use it on our Boots while I was in the military. It could be paint though,,cant really be sure by the pics. I also agree about the grips in the sense they have been "slammed" by someone. The damage extent could go either way, in my opinion, as to wither the the flashguard should be dented or not.
If you want it, good luck getting it. Matching early SG84/98 III's are getting harder to come by.