Wilderness Systems kayaks that have a bulkhead use a router to create a groove most or all of the way around the edge of our bulkheads. This allows the bulkhead to move and flex with the boat which extends the life of the seal and is perfectly normal. The groove does not go all the way through the bulkhead.
Bulkheads can have issues, however, from time to time. Please refer to the diagram below if you feel that what you are seeing is not part of the design and contact customer service for more information.