When I picked up my hull/deck I had a LOT of issues, not the least of which was 2.5 times overdue on the job. When I looked it over I saw this area, about 35% of the transom was not dynelled. I mentioned it and he told me he'd "sanded through" the area. No mention of why he painted over it, though.
Here you can see it was never 'glassed. There are hard edges on the dynel line from the bottom up the sides and up the toward the middle from right to left near the top edge. He clearly had tried to putty it in for fairing and you can see where the putty was before I scraped it out.
Sorry sack of shit. I'd sue him for all the rework I have to do but I know he doesn't have a pot to pee in beyond just scraping by. In the end I was just grateful to get it away from him before he could screw it up more. Hm...a good business model, screw it up, take waaay too long to do even that, get your pay from the by now desperate owner and sit back.