We study the defect AdS/CFT correspondence for a system of N_c D3-branes intersecting certain configurations of D7-branes and O7-planes in 1+1-dimensions. The intersection is chiral, preserving N=(0,8) supersymmetry. The geometry produced by the 7-branes does not decouple in the low energy limit on the D3-branes; consequently the field theory must be considered in the curved background of the 7-branes, and the supergravity background is the fully backreacted solution accounting for both sets of branes. Although we can not work in the probe-brane limit, we still find a consistent defect mode-operator map. In our previous study of the field theory we found chiral D3-brane zero-modes that localized to the intersection. Here we obtain a dual supergravity description of the localized R-symmetry anomaly that these zero-modes produce.