typical? I was in a container for a while. Did you buy it B&B or conainer.
Bigger concern than the formation is the lack of fine root growth. Can't tell with just those pics, but it sure looks like several of those roots are dead with bark peeling off?
Before the back story, how would frost and drought (hadn't been frosty or droughty in this pnw spring) affect this tree that was in a soft- sided, handled container ( which is only now inside the plastic bag)?
6 inches of trunk in the soil.
Tree is junk... One of our local nurseries hack the roots down to stubs of all their bare roots and also the top part too... they advertise as "Pre-pruned", but I'm actually surprised that some of them are surviving. Just super late, and LOTS of TLC... Takes some of the point of a bare root if you HAVE to pot it just so you can baby it before sticking it in the ground.