I think you have a basal growth, and either a new leaf or a second basal growth, and some roots starting.
I'd keep it where it is, don't pot it up until the roots are longer.
Don't be surprised if it cannibalizes the old leaf as the new parts grow.
Patience! You're doing great with it so far.
I have it in a container with sphagnum and humidity - nothing else. Every two weeks it gets a bath of Kelpak and K-lite. I am beginning to think I should grow all of my orchids this way
At some point, I will want to pot it but I also don't want to jinx myself. Any thoughts on when to do so?
Wow, thanks for the progress photos, it's amazing to see the difference!
I agree, it's difficult to know when to pot it up and don't know what I would do in the same situation. Maybe wait for a bit more root growth before potting up.
But I can share my experience with a Phrag I rescued the same way. I kept it in a container with wet leca beads, and humidity was very high (I never opened it either). Once I saw some roots I potted it up, put it back in the container, and left it alone. It needed watering maybe once every 4-6 weeks due to the high humidity, and I left it in ICU for a further 6 months. At that point I slowly hardened it off to transition it my lower humidity living room.
__________________ Camille
Completely orchid obsessed and loving every minute of it....