92saturnsl2,
What you have is a tread-leaving-casing separation. This is the usual failure mode for bias ply tires, but radials tend towards belt-leaving-belt separations. What you are seeing is the spiral wound nylon cap ply (overlay), with threads of cords unraveling - probably because the cap ply contacted the road surface. I don't see any reason for the separation in the photos, but we can't see the entire surface - particularly close up.
In other words, the failure is not in the retread. It's in the casing. This is one of the issues retreaders have to deal with. Their product is dependent on someone else's quality.
In truck tires, the common practice is for the retreader to return the same casings back to the trucking company - only with a new tread. In passenger and light truck tires, the retreader obtains casing from the scrap pile and has to sort through them to find suitable tires. None of the PC and LT tires were designed for retreading (with the exception of steel body ply LT tires, which are hugely expensive to begin with, and not normally used by consumers.) The risk for the retreader is he can not know how good those casing are.
If I were you, I would contract Treadwright and explain the situation. They should offer a free tire to replace the one you have.