Yeah that doesn't look good.
Have you sent them photos of that as well and if so, what have they said to this one?
If they still won't replace the frame then is the oval too small or too big at the widest part? If it is too small then it might be possible to rescue it with a drum flap sander / flap wheel. Not ideal, and also expensive but just a thought. Also, if you bought from Aliexpress and the seller won't come to the party then I would be opening a dispute. That's two pretty poor QC issues.
They repeatedly insinuated I was lying and finally had to "reluctantly" ask me to return the frame after I sent them two caliper measurements (pictures) and spoke in Mandarin. (I'm a Chinese from another SEA country)
These people are really the one of the worst when comes to customer service and QC in the industry.
I own many China products, resell plenty of them and it's really the truth that you get the best of the best and the worst of the worst from the same place. For TanTan Seraph, avoid all all cost.
I've lost nearly 238 USD out of this whole deal, for what is essentially a 350-360ish USD frame. The shipping cost back to them is insanely expensive.