I do believe that some of the folks who make steel targets give velocity/safe range suggestions. Pay attention to their advice. IIRC, birdhunter6 has it right "I recall reading that AR550 won't pit at 150 yds and AR500 is good at 200 but can't recall which target manufacturer said that." The outfit I used to buy steel from sold out, the guy retired
The vendor who supplied our reactive targets at work also warned against continued use of targets with craters/dimples. While the flat plate is supposed to fragment the bullet, the crater/dimple can redirect fragments back toward the shooter(s).
Damage to metal reactive targets is why they developed frangible bullets. However, some of the atomized copper bullets have been known to fragment during the M4/clone feed cycle. Barnes developed a bullet they call the Reduced Ricochet Limited Penetration (RRLP) to solve that problem. It has a jacket and a core made of atomized copper in some binder. Feeds without issue, doesn't damage steel, probably comes apart when contacting hard surfaces and, surprisingly, has somewhat better tissue penetration than M193. I expect someone loads it (under contract?), available-but not cheaply-for reloading.