Usually the reason a quilt winds up with a tuck on the front is that the quilt itself was not flat, and that usually is because the borders were wavy before quilting. I'm not saying that this was the case with your quilt, just that it's the usual explanation for a tuck.
I would ask the quilter for an explanation. We've had several posts like yours recently, about longarm quilting that came back with less than stellar results. One thing I've decided is that if I ever do start to longarm for others, I will talk to each customer about any problems with her quilt before proceeding, and if the final results aren't as good as they could have been, I'll discuss the issues with the customer. It seems to me that if the longarmer had mentioned the tuck to you, and discussed why it was there (assuming that she realized there was a tuck and that it was unavoidable, which may not have been the case) you would not now be questioning the quilting.
As far as removing the holes, usually that is successful. You might need to mist the quilt lightly and massage the holes to get them to close if you don't want to launder the quilt. Best of luck in salvaging your project for the fair.