There are weep holes where the top of the acrylic shower pan meets the tiled wall. These holes weep a rust-colored substance every time the shower is used and always look dirty. The contractor says the rust color comes from the back of the ceramic tile and is normal. The outside of the glazed tile is an off-white and the grout is white. The whole house is tiled in this tile on floors, tub surround, and shower. Should there be no weep holes with this type of tile because of the terracotta back? What can remedy the situation?

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There are weep holes where the top of the acrylic shower pan meets the tiled wall.

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That doesn't make any sense to me. Any hole in the top flange of a shower pan would be nailing slots for attaching the shower pan to the studs. The tile should over lap the flange and then be caulked. There should never be any water behind the tile to run down and stain the pan. If you have water coming from behind the tile you have a leak in the tiles.

If this leak in the wall with the valves and the shower head, the leak is probably coming from either the shower arm or the valves.

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The contractor says the rust color comes from the back of the ceramic tile and is normal.

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That is pure BS.

No such thing as weep holes. You have a lousy contractor.