The plastic deformation of steel (yielding) strengthens it. It is unlikely that the bulge would grow from normal use. Note the breaking of a wire by bending back and fourth. The bend wants to move away from the original location as the OL becomes stronger than adjacent material; you have to force the wire to bend in the same place to get it to break from strain beyond its ultimate tensil strength. The bulges were likely caused from a bore obstruction.

Unsightly - yes. Dangerous - not likely.