I bought one in somewhat similar condition. It wound up having some kind of stem rot (crown was fine). The rot wasn’t apparent until I carefully removed the dried sheaths of the dropped leaves. I repotted mine and have been making sure the affected area stays dry. I’ve also taken the clear insert pot out of the clay pot so that it can photosynthesize through its roots too. Mine now has a keiki coming from just below the crown and two from the base.
In your situation, I’d be inclined to repot making sure the affected area does not contact the substrate, give the roots access to light, keep the plant on the drier side and peel back the sheaths of the dropped leaves as soon as they dry to see if there’s anything amiss underneath.
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