That's a tough tiller. I would definitely tiller that to not bend as much as the rest of the limb
I'm with Jawge, especially if that's as straight front to back as it's gonna get.
I believe that crowned staves have their own problems, but seem to be more forgiving of a little grain run off. Like when I with apple, serviceberry, or hawthorn, the spiral grain is less of an issue on a small diameter stave.....so you got that going for you.
A lot of times around knots, bumps, wags like that I rough it out to the same starting thickness as the rest of the limb, like 5/8" of whatever, and then I thin and taper further right up against the bad spot, but basically leave it alone, unless it's obviously way thicker than it needs to be. And it doesn't need to be much thicker to bend less or not at all.