When that factory was near here, they were happy to show me around as I was in the Defense Business and I got tours of most of the companies making government ammo, warheads, propellants, etc.
What I saw was that the folks starting (and ending) a run, were careful to scrap what was supposed to be scrap or a liability, and that the source of these "seconds" was often the tails of the curve when processes were still stabilizing but not perfectly in spec or before catching adjustments or tool wear that had drifted out of tolerance. Those account for blems and seconds that I am trying to say are not just there for cosmetic reasons.
Sometimes, well formed bullets would be cosmetically rejected, but some of the stuff was slightly off for real specs like length, weight, diameter, etc., but not so far off that they would get them a lawsuit for selling something dangerous intentionally.
I did find some real unshootable scrap in various batches, so if you don't plan on sorting the stuff very closely, do not venture into seconds or blems blindly thinking they are all just tarnished unless they have specifically been screened as such. So be careful as there are really two kinds, ones with cosmetics that are otherwise 100%, and ones that have real spec issues but are close enough for sale.
Caveat Emptor certainly applies to factory seconds and blems.