Hello, we recently wrapped up a large renovation and part of the project included new hardwood floors. Upon the final walk-through, we noticed a few boards looking as such...(Sorry for the long URL string). Is this normal? This bubble/white outline effect? Our builder kept telling us that the wood had holes and the only way to repair would be to replace the board. Thoughts?

https://lh3.googleusercontent.com/pjUlZcoWDjRfbZ4TVpGTkudvpa2nphyEalcAdrdFdsaiP0-FiXCNIOqwpS8b5mydjkRpnj67EKkJn_cCQn-TytfLqSlVP9TmSBaM1NCpqdmTIfGsXXmJzhEufNWxrAW8rIoD06RyI9PDYDKbKjibK_80AIcQ-1iCpEwhpMNg2PQu4PEdC1HXWSbbbH2bqQGUajToi6JfvEZMGov-BTGQO8KgcicWokR13uzgHhsNiSr6LYiz_RpGOo09_gFbYEUl_kIB7RoPbOcumZ_W0__0y_-Mw0t-9Rr3BIKpyFj631GRCpr5rn-oRz6Q86XytNC3CA_zzR0vqLHedQ-ws_DiWkVLc9euLYsRTyBI3ECKm1vLDgxg1f8Xy8dbSaVnUkUfwrUI5REZhzc1Jz90RBTsCuv1KvkGDXzmtwSbvsWTWPfNLjphyAaAMlux2SX4otbVztw3dHWrQE-pO6bLAzXbwarckHkdj-hlHsMn_CBi-3pJbCgKt-Hea3Twa9y8o1WX5OHMp-vTrE-7Cdsfwt3TN2k920gj6Il_IkjKEMvcoR0wUq_ehGnnaK5W5vXJBF56iwMq9iWLI7L7YsbQUbe6-_uIsB92cSgX8oHIfts4KN6aBkDUgV6jnZLS5i_unb8HAKXmRSPeeEeev5MkXE7qRXJ0EN20IQto0JM754xUPh0OFQoaUVi5p4aLL1ye0bM=w1122-h1496-no

Is this a pre-finished product?
I am having trouble viewing your picture(s).
Pre-finished flooring can be replaced, one board at a time, if necessary.
Sorry.

Sorry, maybe this link will work better https://imgur.com/a/mBVXG1n

In general, according to the builder he apparently used Type 2 wood and finished it with a Polyurethane finish.

Insect holes may be filled with either wood patch before the final sanding grit, pre-finished wood filler or putty colored to match the wood color before the final cot of finish. A number two wood grade will need to have minor insect holes, small knot holes filled, etc.
The floor needs to be cleaned at some point, so holes in the surface need to be addressed. It is easier to fix these problems during the sanding process.
A lower grade of flooring will need more labor to provide a finished product.

It doesn't look like powder post beetles to me, you'd see piles of wood dust around the holes. easiest way to check of course is to remove the board and look underneath for more holes.

IMO those looks like finish bubbled after the top coat was applied; is it just this small area or is it throughout? I'm assuming it was installed, sanded, and stained on site? Was this existing wood or brand new wood?

These holes in the surface seem to be consistent with a #2 common grade product. Small insect holes are permitted in this grade and there is no worry that an infestation has occurred. It is left to the installer to be the final grader and place the board in an inconspicuous area by culling, or deal with the holes by filling them before the final coat of finish. Pre-finished flooring will usually deal with this characteristic at the factory finish line, however some problems can be passed on to the installer, who must deal with acceptability.
Applying putty or wood patch to match the color after the finish has been applied will show a difference in finish gloss which may emphasize the characteristic.