About the bubbles - even though the peppers were processed, as it sits and 'soaks' in the liquid it is still absorbing tiny amounts so it naturally gives up tiny air bubbles.
I learned that from making sauerkraut. Even though it starts out covered in liquid AND pressed firmly down, it still gives up air bubbles.
As long as you followed the correct canning procedures, I'd say it's perfectly fine to eat.
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