So I bought an inspection cam to help me diagnose a clanking noise from the front diff area. If you have seen a previous thread about this...this may be a different noise from that one...

Shown: inside the front diff.

The area circled in red looks like torn or frayed clutch material or something...
Does anyone have an idea on what that is? Or if its normal?

 

No clutch in an open diff but it does look like bronze bush material that's been pushed into the gears.