Cross ports normally fray over time. Particularly in the curve at the corners, where fibres are less supported by their neighbours so to speak. My impression from inspecting canopies is that end cell crossports tend to fray the most, with center cell ones next most common.
But the corner fraying should still be within the 'box' formed by the sides of the often rectangular cross ports. (On modern canopies that is -- older ones had round cross ports more often.)
Actual tearing beyond just fuzzy edges would be a concern though.
Pulling it out of the tree is likely NOT what caused that damage. It's fairly normal in canopies, just from normal wear and tear of flaking and opening. Those are not high stress support points. You can continue to jump it without much concern. However, we should keep our gear in tip-top shape, so it warrants having a patch put on it to reinforce it. There's just no major hurry to get that done like before the next jump. Mark the extent of the rip with a pen, and monitor it with each pack job to see if it's spreading further. Get it fixed as soon as practical.