That's bad. There's a nick in the wire, and it's being exposed to water.
Know what happens when you expose 120V to water? electrolysis. There's gonna be oxygen/hydrogen gas generated around that nick in the wire, and it'll corrode the wire where that nick is. At some point the wire's gonna corrode to the point where it overheats - if you're lucky it'll just burn out and your tub will shut off or stop heating or whatever happens if you drop a phase... or more likely it'll get hot, burn the insulation off the neighboring wires and cause a full-on electrical fire in the conduit.
Get that shit fixed ASAP.