I agree, it looks like a damage from road debris. As mentioned, replace it because of safety. If you had another wheel, you could always use it for a shop 'roll-around wheel,' not being on the road.
Once I had just mounted a new Dunlop K591 rear onto my 'J' model KZ1000, a sweet bike. It had a Falicon undercut transmission I had installed, the period Kerker 4/1, 33 Mikuni Smoothbores, a Dyna S ignition, Koni shocks, not a perfect bike, but a great everyday rider. I really liked the clocks on that bike, I think they were my favorites of any bike I've ever owned, just beautiful at night.
Anyway, I went to the bank and as I came-out of the bank, I noticed my rear tire was flat! Thankfully, I was only about a mile from home, so I just slowly rode it home. When I got there and took a look at the tire, I located the source of the flat-a Craftsman 1/8" allen key buried to the tool's 90 degree bend, portruding from the tire! I don't think I had 800 mi. on the tire yet, but I replaced it w/o a moment's hesitation. My safety is first. I have put tubes into tires in the past when I had a flat, but that was when I had spoked wheels and the defect wasn't significant-enough to replace the tire. I replaced or patched many a dirtbike tube, I liked the 'hot-patches' you ignite, they seemed to work well for me. Now, no-way would I ever patch a tire on a bike!