It does appear to be garlic bulb mite damage. While I have not heard of any food health issues with garlic mites (and probably many of us have eaten them on early infected , asymptomatic cloves), the quality of the cloves can decrease rapidly in storage. Freezing the cloves will end their activity and the garlic will maintain much of its culinary quality. But, to repeat, while there is no information on any human impact from eating the mite infested cloves, it isn't a question anyone has looked really looked at.   

As to planting: If you can avoid planting infested cloves, do so. If not, there is some indication within the garlic community that dusting the cloves to be planted with finely powdered elemental sulfur (sold in larger garden centers for plant disease and some insect control) for a week or so before planting may reduce or largely eliminate the mites. Others have dusted the furrows pre-planting and then the cloves before they are covered with soil with sulfur as an alternative approach. No good data yet on either of these two techniques. I hope this helps. Chip Bubl OSU Extension/Columbia County <personal data hidden>   <personal data hidden>