No on the elmer's glue. This isn't a rose bush. It's an orchid. The cinnamon acts as an anti fungal agent and will prevent the cut from getting all foul, without the mess.
That's not a stem. That's a root. Phals grow two kinds of roots. Roots that like to reach down into the medium and grab on to it and roots that like to gather moisture from the surrounding air. We call these aerial roots. I think this may be an aerial root. Just leave it be. You'll probably get several of these if you live in an area with lots of humidity. They're not a problem. They grow out of the pot and reach up and around the leaves. They can look kinda cool if you get enough of them going.
My vote is to not repot it, until you see new roots growing. Once you do, then it's okay to repot into some fresh orchid bark (you can buy this in bags at Lowe's or Home Depot).
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