I don't see anything too out of place. Steel dropouts should be good.
I see the disc on the left, as well as a bit more wear on that side.
Both the locknut on the hub as well as the quick release skewer should be knurled.
First of all... open the quick release, and make sure the wheel sits properly in both dropouts when the bike is sitting on the floor, or even upside-down. I never fully install a front wheel in the air. It is always with the bike on the floor.
I wonder if @Andrew R Stewart; is onto something with respect to the disc brakes (one of the reasons that a lot of disc brake bikes have gone to through axles.
What I probably would do is to go to a local bike shop or bike coop and try to find a Shimano or similar quick release.
https://www.ebay.com/itm/224478799340
Make sure you get it good and tight.
One issue I had with the rear QR on one bicycle was that the the QR spindle is smaller than the interior dimension of the axle (as it should be).
The wheel would pull forward that 1/32" or so which was just enough to cause me problems with chainstay clearance.
My solution was to pull the QR on the DS side back slightly as I was tightening it.
In the case of the OP, he could pull the brake side of the QR nut up (or in parallel to the brake disc) as it is being locked down.