Which pattern are you following? Can you give us a link or a pattern name?
On the face of it, it looks like the first stitch of the RS row is dropped. Your pattern probably has directions for the drop stitch or for what to do to form the stitch on the previous row.
The increase is likely this one:
KnittingHelp.com - This creates the exact same stitch as Make One Away, it
just does it tighter and more invisibly. It’s as if you worked M1A on the
previous row (very, very, tightly), and then knitted it…