As long as it rolls up more or less flat and even, it will be fine. If it rolls up creased in that same place every time, I do think it will eventually create a weak spot. Ours occasionally creases when it opens a little but never in the same place. 4 years in, it's still in terrific shape.
It's normal to oversize the cover just slightly, as it needs to rest on the water for support. Undertrack covers require very little slack since the water is only inches away. It's the deck-mounted covers that are up to a foot larger than the width of the pool to account for the drop. Yours does appear to be a little too large, but not egregiously. Below is a fairly normal cover.
The worst folds we see most often occur within the first couple feet of the edge on a deck mounted system, since the fabric is confined to the smaller width of the track when pinched inward by the guides near the drum (in the vault) and near the leading edge. Here's an example of a normal deck-mounted install. Cover is a year old. Still very pliable, has a memory but not creased.
I expect if you force the slack on yours to migrate now and then, you can prevent a crease, assuming your cover is closed more than it's open.
Looks like your cover is inside - so it may live to see damage (snapped ropes, worn pulleys, guides and sliders, motor failures) before the material begins to dematerialize. I expect you'll get a long life out of it. Our covers last 5 years here, occasionally you find an ancient 7yr old. Not much we can do to push them past that.
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