It is hard to tell with the one with the cloth. If you can easily remove the cloth, then it should be OK. I would just clip off the cane that is crossing, given that there is plenty of cane left.

The one in the photo, NO. Call J&P immediately and let them know! They might not want it back. You can try potting it up, it might be OK, but I wouldn't accept that quality from a vendor, and am kinda shocked (maybe not) that they would ship this out.

what happened with that one is when they cut the Dr. Huey rootstock stem off, they used a dull cutter and it just kind of tore off instead of being removed with a clean cut. Certainly not first quality product.

The canes themselves look good.

Send them a photo and see if they'll send you another one.

Thanks everyone for the advice! I did contact Jackson and Perkins and they will be sending me another one :)

I would still plant this one and see what it does. It seems to have 4 big healthy canes on it!