If it was that bad then I imagine human error with equipment was to blame on that one. I only say this because the hood is fiberglass, fender is metal, if the hood hit it and chipped the paint, imagine the damage the hood would have suffered as well. Most likely someone hit it with the buffer or sander or something in the process of fitting and tried to touch it up.
Had this been the case, it needs to be sanded and smoothed and re-sprayed. Professionally and properly, since the car was in their car I think they need to fix it, but you gotta take that up with them.