They might have intentionally obfuscated it, maybe to conceal how many disks they produced (
https://en.wikipedia.org/wiki/German_tank_problem ).
Just XOR'ing the real serial number with a secret key that has exactly as many bits as the (padded) serial number is entirely sufficient, though my experience tells me that at that time, folks tended to do more complicated (and ironically, much less secure, not that it matters much here) things. Basic cryptography literacy wasn't as common then, as unencrypted and unauthenticated communication was the norm, even on most networks.