Is your walking foot a traditional walking foot with the arm that clamps over the needle bar or is it one of those new fangled ones that Bernina, Brother, etc. are now calling dual feed?
It looks like your walking foot is pushing the top layer of fabric ahead of the bottom layer and batting.
If it's a plain old fashioned walking foot I can think of several things that might cause the problem, either the walking foot is not properly installed, your feed dogs are not up, or it's possible that your presser foot pressure is too high. You might ask how I know these things LOL!
First, make sure your feed dogs are up, then double check that the arm of your walking foot is over the needle bar so it is properly synchronized with the feed dogs. If those things are not the problem, then if your machine has a presser foot pressure adjustment try lowering the presser foot pressure.
Rob