I'm guessing that at one point it had some type of a butt swivel/lanyard attached and the SN was stamped on the side like this K-22 Outdoorsman that left the factory like this...
... at some point, someone decided that they did not want the lanyard and tapped and filled the hole with a screw...
My thoughts on this mystery...
Could be, but there are two holes on the butt of the OP's gun. Did S&W ever make a lanyard swivel that attached at two points?