Our 1982 Catalina 30 (a Mark I) also had a "slight depression
on both sides of the mast". Slight enough that our surveyor
didn't spot it when we bought the boat two years ago. But
he did recommend replacing the standing rigging, and the rigger
spotted the depression.
What had happened is that moisture had gotten into the plywood
core in the deck under the mast (probably through the hole for
the mast wiring). Fortunately, only this plywood was damaged,
not the compression post underneath. The yard cut out the
rotted plywood and replaced it with a sheet of plastic "marine
lumber" and replaced the fibreglass and gelcoat. Looks great,
but it cost me a bunch (mostly labor charges).
My guess is that you could live with this if it isn't getting worse,
but I would be really nervous about moisture getting into the
compression post (if you don't have the metal support as
of hull #5397) and causing major, expensive problems.
And, as I remember, the boatyard guys didn't think they could
check that post for rot without first removing the bad plywood,
at which point you're pretty much committed to the full deck
repair.