Oh shucks, that shallow little crease barely even extends to the sides of the top strap!
Here's how to do flame cutting right!
That's just a .357 mag, not even a maximum.
Still shoots fine though.
In your case, I would be wondering about the effects on the frame in general from having shot enough .38 loads in it to cause even that amount of cutting, more than I would the cutting itself.
K frames can handle loads that cause much more cutting than on that M&P, but those are more modern guns built as magnums.
If it locks up tight with no endshake, I would not worry about it, other than wondering why the factory cut the gas relief too far forward in the frame, since its obviously not under the forcing cone!
Self limiting means that after a certain point it will cease to continue cutting. Cutting is caused by particles from unburnt powder being blasted against your topstrap. Some loads are worse than others, faster lighter bullets seem to be worse than heavier slower bullets at causing cutting. Something to do with the timing of the bullet hitting the forcing cone in relation to the powder combustion.
In my understanding, and hopefully someone will correct me if I'm wrong, but...
Lighter bullets start moving sooner because of less inertia required for initial movement, hit the forcing cone soon enough for the still combusting powder to be blasted against the top strap as particulate matter, acting as a sandblaster....
Whereupon heavier bullets require more time to reach the forcing cone, so the powder is mostly burnt, leading to less residue blasting against the top strap, less sandblasting, less cutting. That's my understanding of the dynamics, anyways.
There is a point after which the residue does not have the velocity to continue cutting metal, and that point seems to be a 1/32" or so into the metal of the topstrap of my gun. After it has cut to that point, it will no longer continue to cut, and the cut will not grow deeper. That is what "self limiting" refers to. It will not cut through your topstrap, after a certain point the cutting will cease.
I'm guessing that because your gun is a .38 special, that cutting stopped a long time ago, and won't get any worse.