By the way, 1119 will corrospond to RY 1 or Ahd. The coin seems to show 10.
What I initially translated as "Mubarak" in my earlier attempt looks like "1119" on closer examination. (I need to see an optician!) The bar above it could then be "Shah". That gives us "Sikka Shah Alam Badshah Ghazi 1119".
Shah Alam I ruled for only five years (from AH1119-1124/AD1707-1712), so RY 10 won't be possible for him in any case. We can, therefore, take the regnal year as Ry 1 (or Ahd), as you rightly pointed out. I checked some examples at Zeno and
this one with RY 1 also has that confusing dot after 1, as on your coin.
"Zafar" vs. "Maimanat"
On a closer look, your dealer may well be right about
Zafar. The vertical line of the "Zoe" is pretty thin and I missed it. Furthermore, this is not exactly how the "standard"
Zoe looks like. (It looks like the lowercase English alphabet "b" with a dot just above the rounded part on the right.)
Here are both words for comparison.
Zafar (meaning Victory)

(The use of this word on the coin may have reference to Shah Alam Bahadur's victory over his brother Azam Shah in 1707 AD, RY 1.)
Maimanat (meaning Prosperity)

I found a few coins, mainly of Azimabad, with a different type of bar (maimanat) than the standard or what is seen the coin above. What is the significance or is it the die engravers fantasy?
The coins you mention have the mint name "Azimabad" at the top-most part of the reverse (which forms the "bar" you describe). Again, a deviation from the more or less standard pattern.