We recently replaced some old, cracking shower walls in a bathtub area with tile. Looks great. However, on one wall the drywall next to the tile bows out so it's not even with the tile in the middle section of the wall. That drywall edge also was damaged a bit as it was cut for placing the tile.
As you can see in the photo below the drywall sticks out about 1/4" - 1/2" on this part of the wall. There's only about 2 feet where it sticks out, the rest is even with the tile and looks nice. At minimum, the drywall needs to be fixed, but I'm a little worried about it getting damaged in the future.
What's the best way to fix and/or hide this? Our tile guy suggested running some sort of flexible molding the entire length of the transition to hide the gap.
The tile extends out past where the water will likely splash, so there won't be a lot of direct water on the transition but certainly humidity and some wetness, so I want to avoid further damage to the drywall.