I can't tell for sure from that small image what the problem is.
I think I see torn sprocket holes (almost always the camera or camera users fault)
The bottom edge of the strip looks mangled, I'd have a better idea of how it happened if I actually had the strip in front of me.
I think I see odd scratches on the second frame (poor handling of the film by the lab)
My best guess is that the strip got caught in an auto advance either in their printer or their negative sleeving machine and in their efforts to get it unjammed they mutilated it and instead of bucking up and telling the cusotmer there was a problem they stuffed it into the package and hopped no one would notice.
You didn't get all of your negatives back? (The lab should have a way to find them, there were jobs being done at the same time and your negatives are most likely in one of them, the lab should check the jobs and if needed call the customers who have already picked up their work and ask them to please check and offer a freebie to them as incentive to return the negatives to the lab)
Face it though, the workers in Targets One hour lab aren't photofinishers, last week they were probably in charge of stocking feminine hygiene products. They're just monkeys who are pushing buttons on machines that they know nothing about.
Professional Labs will make goofs and screw ups too, trust me on this it's what I do for a living, and we do screw up. Almost anything, with some major exceptions, can be fixed to some extent though and the attitude you recieved was