Seems clear to me that it’s a flaw in the forging, but I would think any flaw would be only one layer thick – unless, of course, there was a separate core steel intended to provide a stronger edge. In which case, it’s the core steel that was damaged and the question becomes; how?
Reprofiling the blade runs the risk of simply finding more such inclusions.
Even tho it looks like the crack seems to fall in line with the Damascus surface lines, each line should really be only a few thousandths thick (if that) so any fault following a surface line should be only one or two layers thick.
If it was a kit knife, the owner ought to be able to ask for a replacement.