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These are screw nut threaded inserts for furniture typically. That machine screw seems a bit long for the job. 🤔
Almost certainly the wrong thread pitch too, so it will lock into the insert and be stronger than the cheap particleboard and destroy the hole.
I doubt they would have gotten it all the way through like that without marring the outside if the thread pitch wasn’t right.
What am I missing? Why would it mar the outside?
These are usually quite soft metal, and generally used in particleboard. Itself quite soft. I have had the inserts spin and strip out holes many times, I’ve also stripped the internal threading many times.