[lugerholsterrepair]

Tom, This is not a hard and fast rule...There were so many manufacturers of holsters in Germany it is not at all surprising they would do things a little differently. Generally speaking these should be stitched over into the edge. The WW1 holster was made that way. Stitched clear over into the magazine top edge.
It is important to look at the overall piece and not focus on a small specific area too much since there is some variation on many holsters.
Look for linen stitching. Looks like hemp rope twisted. Worn wrinlkey leather, rubbed dye and a general overall look of age and authenticity. Like any other antiquity, age is difficult to fake well or easily.
The photo's provided of this holster are poor at best. It may be that the stitching you are questioning has been rubbed away. I cannot see it well enough to make a determination.

Taking a second look at this mark, it actually looks pretty good and if it were almost any other place on the holster I would say it was fine. Right where it's at, it has me bothered.

Jerry Burney