Yes they are thinking of spawning. If its was two males the damage would be far worse.
I think the adipose fin there is some sort of sexual turn on spot and the male likes to fiddle with it to get her to spawn. Unfortunatly sometimes he's trapped her in the log a little bit early and she's not quite ready to spawn.
Maybe she will stay away from his log trapping antics until she's really quite ready now.
Just keep the water clean, its not a bad wound but you want to keep an eye on it and make sure it heals quickly without a secondary fungal infection setting in.