There's no hole in that sintered filter. It's a deep recess/cone that increases the surface area available for filtration. That filter is the best indicator that the first stage hasn't been mistreated. It's fine. Some of you old guys (like me!) are maybe used to flat disc sintered filters. Sorry, guys, those days are gone. It's not a hole.
Wow. I didn't think what I do is rocket science, and I honestly don't mean to criticize anyone, but golly! I think lots of us could do with an Equipment Specialist course, complete with a PADI C-card! This was an easy question, but yet another reminder that divers are not taught enough about their gear.
Again, I'm not dissing anyone. But I guess there are easy things a good tech can see that aren't obvious without training and experience. Sigh.
Download
@couv's checklist. Buy an IP gauge. Spend $80 and read Regulator Savvy from scubatools.com
cover to cover. Twice. You'll save every penny in avoidable bogus "repairs".
In other words, yes. There are as many bad repair shops out there as there are naive divers. It's just not a money-making part of an LDS' business, compared to wetsuit and regulator sales. I got started when my former shop told me I had a torn 2nd stage diaphragm. I knew damned well my reg was fine when I brought it in. It was just "due" for annual service. After paying extra for the diaphragm that the tech had poked a hole in, I started servicing my gear myself. But it took a few thou' in instruction, time off regular work, a bunch of tools, and a lot of practice on eBay regs. Ten years later, I can say I finally know what I'm doing, and I repair regs on the side for all three shops in my area. But you know where I learned that poking a hole in a D350 diaphragm was a rookie mistake? Right here on Scubaboard.
It's really better/cheaper to find a good shop and stick with them.