What you’ve got there is a panel pilot bit.

Imagine you’re building a vanity. You make the countertop out of plywood, cut a rectangular hole for the sink, and then put laminate over it. Now your sheet of laminate is covering up the sink hole, you need to cut it out. In the home shop, it might occur to you to get out a drill, punch a 5/8 or 3/4" hole, then you can stick your ball bearing flush trim bit through that hole and then cut out the laminate as a template routing operation.

Now imagine you work in a cabinet shop and you’ve got 50 vanities to make today. You don’t have time to keep switching between your drill and your router, so you use this bit. It’s a flush trim bit, the smooth area near the tip is a template guide, and the point is so that it can plunge itself into the work without a separate drilling operation.

The LLM’s very confident assertion that it’s a plug-cutter drill bit is obviously wrong, but scrolling down the image search a bit reveals the truth (allegory for how “AI” is useful but no panacea?). It’s a Panel Pilot bit. If something like laminate or OSB is overlaid on top of an opening like for a window or sink, you plunge it through the cutout area and use the unsharpened part like a crude follower bearing. I would be very careful using it on any material more than 1/4-1/2" (~ 6-13mm) .

It also looks like yours is way shittier than the one in the link, LOL, but that could be a trick of the camera angle.

That’s a vegetable peeler.

Try it. It might help to understand what it is for…