Thanks! The wales are intentionally cut that way, I guess because some designer thought it was clever. The wales on the body actually line up when my arm isn't extended to take the picture.
It's among the oldest pieces in my closet (I discovered yesterday after my phone fell out that I'd worn a hole through not just the pocket bag, but the lining of the jacket), so it may be replaced sometime soon. Until then, I embrace it's quirkiness.