I see no problem with the manuscript readingśrīvatsa-saṃjñād dvija-puṅgavād yaṃ śrī-bhāyi-nāmnī suṣuve ca sādhvī |
śrī-yādavena vyaracīha tena sudhā-nidhis tājika-yoga-pūrvaḥ ||
(but I do see a problem with David Pingree, a scholar I respect very much, if there are other instances of him emending texts as in the present case).
It was not unusual to write the non-Sanskrit words as one heard them or as the metre required; approximation was acceptable. Therefore the writing of (our expected) bāī as bhāyī or bhāyi need not be viewed as presenting a serious problem. (again. cf. Paturi: “Shortening of the end vowel is not a hurdle …”)
The “ca” in the second quarter of the verse initially bothered me, but there could be justification for it in a preceding verse of the section, if [if the verse under discussion is not the first verse of the section].