Smell the roots. Should have earthy soil smell. They look fine to me though. More experienced posters maybe more insightful on this issue.

The white roots I'm not too concerned about as I can just trim those out. I'm more worried about the big nodule at the top.

Here is a closeup picture.

The white roots are fine, just looks like new root development. The "nodules" look like burr knots, but not for sure.

Thanks everyone, returned it for a replacement. The replacement's roots look much better.

Looks like crown gall to me also.