You can safely cut off that old bit of stem, I'll usually do that as well when repotting older Phals.
As to things to think about, do soak the bark for a couple hours prior to potting up, it helps the pores in the bark open up and absorb water better. New bark is rather hydrophobic at first, and soaking it helps it get past that phase. You can also skip the soaking, but you can expect to water much more frequently in the first months after repotting.
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Camille
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