I think you have frets, at least they look like frets to me .... hard to tell from the picture .. .I guess they could possibly be tool marks but I doubt it.
Frets will feel raised up, even if tiny, you can feel them with your nail ... another give away is they are more raised when the bow is strung then when unstrung.
I think part of the issue is the quality of the oak board. I think those dimensions are reasonable for a red oak board bow for that weight and draw length and I think you tiller looks pretty clean. The board however, appears to have very thin rings and too much of the open porous wood (latewood?) so it's not as dense as some other red oak boards.
When I look for a red oak board I will only buy one with perfectly straight grain AND with very thick rings (1/4"thick minimum, 3/8" or 1/2" is better) AND very thin latewood ... less than 1mm, the thinner the better. These boards will feel noticably heavier, because they are much more dense.
I often leave HD with no boards ... but if I take one home I know its going to be a decent board.