Yes, that is damage! The quilting was done around the appliqués, but somehow there was a slip up and some stitching went onto this appliqué and the fabric was damaged when the stitches were removed. I hemmed and hawed about wether to remove it and finally decided I could not live with it. Fortunately the appliqué could be removed and I had just enough fabric left to do a new one. I had originally appliquéd them on with invisible thread using a hem stitch. So I can do that or hand appliqué the new one on with invisible thread.
So there is where I pulled it off. It will be pretty easy to remember where it goes for sure and exactly the placement. It took me a little time to find the pattern, thank goodness I kept that magazine. Frankly I even considered making this quilt crisis a design element, but I guess it is off to fix this EEEEEKKKKK!
It is a finish, but not a very happy one at the moment.