Looks like a poorly done repair was made. And the drywall knife they used to make the repair cut the corner tape.

Lined up with a ceiling fixture, switch, or outlet? It's the sort of hole an electrician might make while fishing wires through finished walls. --also the sort of repair an electricain might make to drywall ;-)

Thank you! its above a door to the bathroom but there could have been a repaie during the build - the drywall has had a lot of issues in this house!

I agree with ci_lantro. That's the kind of result you get when you don't have much experience applying joint compound and don't properly feather out a repair with a knife. You can also see a divot in that area where there they probably had a deep hole to fill, had shrinkage after doing the repair, and never went back to level it out.