Yep that is exactly what a burned exhaust valve looks like.
Eventually it would make a V shaped crack in the middle of that flat spot.
It will need to be replaced.
If you have access to the tools, it is not a hard job.
If not take it to a mower repair shop, not a glass fronted mower retailer.
Most shops will replace the valve, clean the head & lap them in for a reasonable amount.
I charge 1/2 hour $ 30 + parts.
Not sure if yours has a seal on the inlet only or both inlet & exhaust.
If you want to do it yourself, buy a long 14mm x 1.25 bolt & a couple of nuts.
Thread the bolt through the spark plug hole & lock it with a nut either side
Then use this to hold the head in a vice while you attack the valves.
From the look of it something has dropped into the cylinder then got stuck under the head of the exhaust valve holding it open just a touch.
The actual damage looks exactly like what happens when a spark plug helicoil is used & the fitter loose the tang into the engine.
The next step is to get a new valve and feel how it fits in the guide.
It should rotate freely but not rock from side to side.
O small alloy heads like this one it is better to fit a sleeve in the guide than to replace the guide but either way that has to happen before the seat gets recut as the seat has to be true to the guide or the valve closes ( or rather doen't close ) at an angle and yo are back where you started.
Before you get too far, check the price of a new head.
Often the difference between a new head & a head job is marginal.