If the tile is warped and will visually affect the installation it should be discussed with the client prior to installation. This allows the opportunity to present options for an optimal installation. Wider grout joints, Use of a lippage tuning system or simply a different pattern. Is this amount of lippage acceptable? No IMO. Even if you insisted on a small grout joint the discussion of lippage should have been brought to your attention. Where you go from here is up to you.
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