My contractor installed molding that has green stains and chips on it. I believe it is from a previous project (or was sitting in a trash pile somewhere -- it also has a funky odor). He's telling me that it's just where the putty got smudged and that it just needs a second coat of paint. See photos below.

Wondering if anyone has had a similar experience. Contractors: does that sound legit?

This came after a string of other issues, so I'm about ready to cut bait (fire him, take the loss). Just want some corroboration about this latest issue before doing so.

Also, what's up with the 1/8" of space he left under the molding? Is that typical or a clearly botched job?

Thank you!