its fine, id replace it once the stitching starts being affected or when I start getting nervous about it
depending on the use and whatnot, I cut ropes at the damaged spot if I can see the core through the jacket, or if more than 2 or 3 strands on tennex get cut, same for hitch cords and stuff
main thing with yours is the crossover where the stitching is won't see much load, so its extra safe