Should I be concerned about this carbon frame damage?

Nah, carbon frames are disposable. That looks like damage which is in a large carbon fibre area. It’s not a high stress area. If you get a few good years out of it, you’re good.

It should be fine. That area will have the most beefy carbon thickness of the whole frame and as previous comment said the highly stressed area is the top where seat tube, down tube chain stays meet.

It looks like they put a ton of paint down there. It doesn’t look like you even got down to the carbon.