A number of gen brands (even including Rolex in a couple of cases) have appeared in big box stores & the reports made the rounds of the gen sites several years ago.
It is not a good idea to show your rep to an AD (gen dealer). Especially, in the case of a Rolex branded item, the AD may confiscate it &, in some cases, because it is illegal contraband & infringes on Rolex's trademarks & patents, you may also risk potential problems with Rolex attorneys.
If you want to keep it running, search out the 'powdered graphite' remedy for the secs @ 6 7750 & have your new watch professionally overhauled & graphite-treated. You might also search out my 'Perfect Daytona' mods.
You have to unbend the center rings, remove/add links & rebend the center rings. Rolex had a tool to do this, but I have not seen any watchmakers that had 1 for decades.
What is stopping you from further upgrading the case, tube & crown? Better cases can be had from Yuki, NDT & Phong, all the watch parts houses sell Swiss-made tubes & Triplocks can be found on ebay (about $50 to $250, depending on condition & seller).
What you have looks very good.
What you are seeing is essentially the end of the seconds hand tube folded back on itself to form a rivet, securing the hand wand to the tube. This is common on most watches.
You may need to repaint &/or resize some of the hands &, as with all aftermarket chrono hands, you should epoxy their joints prior to installation
(Click pic for link)
Unless you have an unlimited budget, you might want to wait until you receive his price before popping the champagne. Likewise, although MQ seems to be a bit more reliable than Phong when it comes to delivering an item as advertised, as always, be prepared for variations.