Most of the instrument has deformed very little, so the average deformation is small. You might as well ignore that value.

The maximum deformation is of interest. Under Analysis Setting, did you turn on Large Deflection?  If not, turn that On and Solve. Compare what the maximum deformation is after that solves. It may be less.

Maximum deformation is not helpful to predict material failure.  Maximum stress is what to look at to predict material failure.  Material is tested in a tensile testing machine that records the force and displacement of the sample, then those are converted to Stress and Strain.  When the material fails, there is a maximum value of stress that is called the Ultimate Tensile Strength (UTS). 

Plot the Maximum Principal Stress and compare that maximum value with the UTS to decide if failure has occurred.  You don't see the failure in the plot, you decide if it would have failed or not.

Mechanical properties of wood

In the reference above, they use Modulus of Rupture, which is like UTS.  If your Maximum Principal Stress is greater than Modulus of Rupture, then the wood has failed if it is less, then the wood can carry that load.