It's all about the council being negligent. If they are told about a pothole they should do two things.
1. Decide is the report and location one that warrants an urgent visit. They have to err on caution on this as they have been told about something that possibly could cause damage to a vehicle or serious injury (especially to a cyclist or motorcyclist). There is no reason why councils should not have a dedicated person to look at every report. Only in exceptional circumstances where there is clearly limited risk e.g. in a layby, should they not take prompt action.
2. They then, after a quick visual, need to take appropriate action. It could be nothing to do for now, warning signs, urgent repair or even a road closure.
White circles and being made aware does not allow councils to be absolved of blame for negligence.