Is it normal for a high end knife maker to ship out knives with cold shuts?

Not to justify anything for the maker but it is a blown out image, meaning the issue may far not be as huge as shown in the picture. A picture of the entire knife could be more telling.

Plus, the maker is willing to make it right. So what is the point of the OP?
My take was that he was asking what a "cold shut" was, so he could make an informed decision on how to proceed.

What's the point of your post?
 
Good on you OP for returning it. Seems like the maker, while they were honest for having made it right, it seems rather shady that they even tried to get you to keep the knife. I agree with others, it should have never gone out.
 
That's true for a certain value, but Damasteel doesn't sell their product as damascus steel, they sell it as damascus-pattern powder metallurgy steel. So to say that Damasteel is 'faux damascus' when Damasteel makes no claim that their steel is damascus is just pure ignorance or ignorant braggadocio on the part of the OP's maker, especially given that Damasteel is a very high-performance steel and is in no way an inferior product. I'm real curious which 'well known' maker has such an attitude.

Any maker can get a bad weld in a damascus billet, but very curious which one let this out of his shop.

Damasteel does sell their product as damascus steel (and why wouldn't they?):

WHY CHOOSE DAMASTEEL®?
Damasteel is the best performing stainless Damascus steel in the world using the latest gas-atomized PM technology with very high cleanliness. It has incomparable toughness and strength combined with excellent edge retention and corrosion resistance. This allows for a very user friendly Damascus steel that is made to be abused.
 
In the context of that photo that quality looks horrible and the Damascus pattern sure isn't anything to write home about.

Define "quite a bit of money".

I'm curious about that pattern myself. It looks almost like somebody simply layered nickel and steel and welded with no folds.
 
Not to justify anything for the maker but it is a blown out image, meaning the issue may far not be as huge as shown in the picture. A picture of the entire knife could be more telling.

Plus, the maker is willing to make it right. So what is the point of the OP?
The point was They told me this was normal with Damascus and was actually how I could tell I had a true Damascus Steel blade. I wanted to know if that was accurate. It obviously isn’t. The maker called me last night. Said they were sorry and the knife should’ve never left their shop. Also apologized for the email they sent saying it was normal. They two spots are as bad as they look in the image.
 
In the context of that photo that quality looks horrible and the Damascus pattern sure isn't anything to write home about.

Define "quite a bit of money".
$800. I know they have knives a lot more expensive but for me, that’s quite a bit of money.
 
I dont think he is asking what a cold shut is.
I was asking is it normal for makers to send Knives out with cold shuts. I honestly never knew what a cold shut was before googling it yesterday after the maker said it was normal in Damascus and that’s how I knew I had a true damasacus blade. It didn’t sound right so I began asking around if that was normal.
 
Hopefully the new blade won’t have any issues, and as others have already said - a better looking Damascus pattern. Personally, I wouldn’t be happy about that blade without the flaw.
 
That is a common issue with Damascus if the maker isn't very good at making it. No way to make it never happen, but skill will make it highly unlikely. For $800 I would absolutely not accept that knife. For $100 I'd be slightly hesitant. Either way, that is unacceptable to let leave the shop. If you ground the blade and found that I'd understand, but that is blatant.

Honestly, if the maker thought that was okay to leave, I'd be worried that he definitely cut some corners elsewhere. Only when called out did he say it wasn't okay, but it isn't like he made the knife blindfolded. I'd say name the guy, threads like these that show problem with maker X only serve to inform people that somebody might be doing something bad... but not who should be given extra scrutiny.
 
Good on you OP for returning it. Seems like the maker, while they were honest for having made it right, it seems rather shady that they even tried to get you to keep the knife. I agree with others, it should have never gone out.
I'm thinking the same and now I'd be worrying about the heat treat and things you can't see going on in the blade steel itself. I wouldn't want any shortcuts done in the building of my 800.00 dollar knife.
 
Maybe posting a picture of the entire knife might help? Maybe it’s not as bad as we’re thinking but it’s hard to tell based on the pic provided.
 
It would be my first and last purchase from that maker. Based upon his inexcusable email justifying his poor product, I'd try to get a refund vs exchange and move on.
 
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Wow. That's a lot of money they're taking and sending you a subpar product. Id take a refund and spend elsewhere. That's a bit shady on their end, would also appreciate knowing who the maker is
They won’t refund. They are willing to make an entirely new knife. If things don’t work out with the new knife I’ll be happy to share the maker. Right now, I’m going to give them the benefit of the doubt.
 
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