I haven't seen any cutworm around or observed any similar damage before... however, I have learned that as far as bugs and grubs go, that doesn't necessarily mean anything!
The plant is looking a little worse for wear ATM due to the possums around here who love nothing better than a snack of pepper plant (the reason I was planing on moving it to my other growing location):
Prior to the possums having their way, it appeared quite healthy:
As it is now, it is putting out new growth all over the place, but I just discovered this:
I'm thinking a good chance it may be related?
Although the plant is certainly worse for wear ATM, it is very much still alive and showing it wants to stay that way. Sure would be a shame to let it go.....
EDIT:
Hmmm... just had another look at the "wound" and discovered two fungus gnats hanging out in it......
(But not without my good friend Hypoaspis Miles...
)