It almost looks like the tension is too tight. I'd loosen the top tension a bit. It also looks like you've created a slight pleat. Maybe one of the solutions is to STOP using the fusible batting and try and baste without it. Thinner batting may give you a more successful result as well.
But take a picture of the WHOLE quilt for us. I'll bet we'll love it and won't notice these "issues". And once it's washed, you may not notice them either.