I have seen worse!
Those wash arms sure DO throw lots of water all over the dishes and a split seam is not all that uncommon especially if the machine was used heavily and if the users did not clean the arms on a regular basis(meaning at least after each meal period during the day). If the holes clog up, you can just imagine the pressure the seams are exposed to. The smaller arms on the LX Series will also split due to clogged holes in the wash arms. This is quite prevalent in the Starbucks stores where the arms are seldom cleaned out. When they call to report leaks out the door or poor washing results, the first thing I do is take out the arms and show the managers what has been going on. They are quite amazed that the arms can split like that.But when you have a 3/4 hp motor pumping water into those arms in that undercounter machine, the pressure will find the weakest spot and open a seam.
On the AM machines, you can probably get away with leaving the arms in place until a replacement comes in and not really notice too much of a wash difference but on the undercounter machines, if the the split seam is on the bottom arm, water will usually spray right out under the door or else it will spray downwards into the water in the bottom of the tank and literally blow the water all over the place and create waves of water which will go out the door in large volume.
In the case of the undercounter machine, if the top arm is okay, you can buy time by transferring the bottom arm to the top position and vice versa. But you need to replace it so you do not lose washing ability.