This is pool bond beam deterioration and cracking.
This pool is lacking waterline tile.
The gunite pool structure and the deck structure are two different structures which should not be coupled together. They need to be able to move independently or they develop cracks like you see.
Study the designs in
Expansion Joints and Coping - Further Reading and you will see three different ways pools and decks can be constructed. In all cases there is an expansion joint between the two allowing for independent movement.
If your Pool Inspector is knowledgeable he/she should tell you what type of deck style you have and how it should have been constructed. If he does not dig into that then I question what he is bringing to you.
That pool likes like either low budget construction or repair that cheaped out on proper deck construction and waterline tile.
What would need to be done is remove the deck and strip at least the bond beam area of the pool. Repair and rebuild the bond beam as necessary, install waterline tile, then install either a cantilevered deck over the bond beam or coping on the bond beam with an expansion joint separating a new deck.
Your challenge will be finding a contractor in the area to take on that project unless you are good at DIY that type of work.
It is all repairable. Just costs money to do it right.