The only 1700 Lima 8 E I have a picture of does not use this 2 pip die. It is a no pip die with some weakness and doubling. A lot of the potential problems with this coin have already been identified.
It is pretty much impossible to accurately identify the palm tree pillar tops and the lion type because of the weakness. The lions do appear to be late 1690's style, but appear a little big.
I would add that the holes in all the letters and numbers appear too small, and that the P in PLVS VLTRA looks too thick (I located the same P used on a 1699 8 E today.) The crown is also too boldly struck, especially on the bottom. This is similar to the 1700 I have a picture of, but there is a great deal of detail loss, kind of unusual on this one.
If the coin was that boldly struck, there would not have been so much design loss around the edges, and we pretty much know that at this time (1700), Lima struck their gold escudos on pre-weighed planchets that were filed or rolled to an almost uniform flatness. So you are looking at a die that hit straight on, but for some reason was unable to compress the thicker center area and make a flat strike, and was somehow not struck as a double, where the die moved and struck on only one side of the coin planchet, creating a double, or a facet.
If it was that boldly struck, there would be large holes in all the numbers and letters, and more of an overall good finish with a lot of detain from the small engraving, going on out to the outside. And if not, at least it would have ghosted a little cleaner. This one looks like there was never anything there to begin with.
It might have also picked up on the flat background where the punches were stuck to the die, and excess depressions in the die made where the extra steel behind the design or number ended up getting punched onto the smooth surface of die, and was then transferred to the coin face as a small raised area behind the lions and castles.
I did see these when I looked at the larger pictures again, but they appear kind of large and hug the sides of the cross in a way that is unnatural, especially taking into account that the lower left lion appears to have been struck at about a 5 degree from a dead center angle, but the punch outline is almost still parallel to the edge of the cross, and it is a flat continuous line, which I think is kind of different from the lions punched on other 1699-1701 coins, where the ghost outline is curved.
These dies were both punched with harder steel punches, and partially engraved, but the tendency is for minters at Lima to reuse whole dies, or the die punches from year to year until they wore out, or got too badly chipped.
It does appear a small 0 might have been used for the 1700 dates, as the 1700 coin I have a picture of uses a small 0 or o for one of the 0's in the date, perhaps picked up from the 4 or 2 escudos punches and substituted, or made quickly, shaped by hand in the shop from a broken punch tip. The 8 is pretty different from any other 8's I have seen. The legend is a little off on the outside too, in that the letters appear off from their usual position, but I don't think this is uncommon in any of these coins.
This could still be real; but man, it has a lot of unusual wear and some unexplained weirdness to it.