that is exactly how they come from the factory. from the beginning, folks have complained about it and both of ours are cut the same way, they need to sharpen their tools !!
they fucked up on that wheel well from from the factory it should have been plastic like the front with a soft liner to keep it quiet something is probably eating yours though cats or raccons
They all have a ragged edge but yours looks like the ass end was chewed out of it. You seem to be missing a shit ton of "fabric" since you can see the exhaust that much.
This isn't a mystery. It's not raccoons. It's been observed like this on showroom new ones. It's built like that and deserves more public shaming than a forum can accomplish.