Looks like an area where a pin knot barely worked out.
OK, here's a simple fix for your bow: Take a round chain saw file and groove out that area, but no more than half the dia. of the file. Now, round out an Osage dowel the exact same dia. as the file. Glue in using super glue gel (sorry Roy). Finishing is rasping/filing/sanding down the dowel and applying a finish. Add a nice wrap if you like (not mandatory though).
Works super well............Art