Distichiasis in Goldens is usually a pretty minor issue, so a dog who's strong in lots of other areas will often be bred despite having it. That's why it's listed as "breeder's option" on the CERF form. By itself, it's not a strike against the breeder at all.
Distichias are misplaced eyelashes. They tend to grow on the inside of the eyelid where they can touch the cornea. Because they're frequently small, fine hairs, they rarely cause problems. An ophthalmologist can freeze the misplaced follicles if they cause problems like weeping or ulcers, but mostly they're left untreated unless they cause problems. One of my dogs has them. At one point, a heavy one broke off halfway down and caused a small corneal ulcer that cleared up quickly with treatment. The ophthalmologist said that she still probably wouldn't bother freezing them unless it happened again. He's 4, and that's the only problem we've ever seen with it, and I can't even be sure it was the distichia that did it rather than a scratch he could have gotten while out hiking.
Discuss the issue with the breeder in terms of the risk to the puppies. For example, is there history of distichiasis on the father's side? How severe is the mother's, and how many of her littermates and other relatives have them? Open and honest conversations like this are quite productive.
But, as a simple answer to your question, no, it's not an alarm for a breeder to breed a dog with a breeder's option code on a CERF. It's still a passing CERF.