Originally, it had inlaid hardwood floors and oak wainscoting. While the wainscoting has endured, the hardwood floor has since been covered by a carpet due to years of wear caused by chairs and tables being dragged across it.
This passage describes how the original flooring in a room, which included inlaid hardwood floors and oak wainscoting, has been replaced by a carpet because of damage caused by chairs and tables being dragged across it over time.