Well, you’re giving it a location to start buckling from, but will it start buckling? Cracking (of the tube – the paint cracking just means you’ve bent it more than the paint can take) shouldn’t be an issue as it’s generally under compression.
Can’t say what I’d do without seeing it really. But in a worst case, a dent will act like you have a hole the same size, would that take away much of the load capacity of the member? FWIW I’ve ridden with top tube dented frames (similar or smaller dent than yours) which have variously been stolen, or cracked elsewhere. And I’ve quite a deep but only about 1cm dent next to a BB (right on the weld) which happened 10 years ago on a frame I still use. Your frame may vary.