It is December right now in Southern CA...this is after couple of months finally seeing couple of green shoots....so the question is what is the best path forward?
cutting the rest and repotting now?
or let it be as it is and wait till Spring?
Buhuo, I'm almost sure it's December right now everywhere.
Back to the topic. .I would give it proper conditions (as Ray said, it seems underwatered) and wait until it grows new pbulbs before divided it.
Going forward - Dendrobiums should never dry out when making new growth, which is usually Spring to Summer. I think large bark in your climate would not be the best choice. You might need to water a healthy plant that size in large bark every other day in warm weather.
I strongly agree now is not the time to repot. It is possible the only living roots on your plant will be the ones from the new growth. The time to repot orchids is when new roots are first forming, 2-3 millimeters long.
Dens. will not tolerate full sun in your area unless you're very close to the coast - like on the coastal side of Interstate 5.
__________________ May the bridges I've burned light my way.