Rusted Brake Release Bearing
This type of damage is a little unusual but something must be leaking from above,
The rusted bearing is not the radial bearing, this is a sealed ball bearing right above and set into the brake package, this bearing may also be damaged.
Try lubricating the release bearing and put every thing back together if the release bearing turns and is not too rough. If the washer works but roars at full spin speed you will likely need to replace the radial bearing and you may need to replace both.
You should watch carefully for leaks when you use this machine for a while.
John L.