Very interesting. The only thing I could think of is that the plant is already root bound and needs more soil to put out more roots. Or maybe some of the top layer of soil got washed away while you were watering the plant. Hard to say for sure. But interesting.
Bruce

Good possibilities, it's the only one that is starting with flower buds. I think I will re-pot then this weekend. Thanks

Good looking plant...I agree that it looks like it needs a bigger container.

Update, re-potted, buried deeper, grew bigger, and has flower buds. Still same issue root nodules keep growing above the soil line. In the second pic at the base the white nodule is not apart of the soil its roots forming and the smaller nodules appearing above, hope I don't have to keep burying this plant lol. do I just leave it exposed and not worry about it or keep burying?

Looks like a beautiful healthy plant. I wouldn't worry about it.

Could be a moisture/humidity thing, particularly since it's close to the soil line. But, I wouldn't get worked up over it.

Hard to see exactly what sized pot you have it in but eventually you will definitely want to up the pot size to at least a 3 gallon plant if you are going to put it outside. But from what I can see, the plant itself is in great shape and the fact it is throwing out buds is a good sign that it is thriving. I also wouldn't worry about the white nodules themselves. If it throws out more roots, let it. It won't do that if it would be detrimental to the plant. So, do what tsheets said and don't get worked up over it.
Bruce

Ok thanks for the feedback all, will leave it, I may leave it in the current pot or pot up or put in the ground have not decided.

I planted 2 each of 2 varieties of pepper some while ago. Both plants of the one variety got root nodes above the soil line like a tomato plant. When I re-potted, I buried those 2 more deeply and gave them a richer growth medium. A few weeks later, they look very healthy and don't have more root nodes showing, so far, above the new soil line.