Let's say the bow has 2000-3000 arrows through it. Is that enough to have the strings go out like this?
That's not even sniffing being shot out yet. I'd twist the strings and cables up to bring everything into spec, leave the peep out for 100 shots, and then put the peep back in. I'd also still like to see a picture of the peep because like @Reburn has mentioned, it is probably too tight.