What, if anything, is wrong with this hub?

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I took this hub (a PowerTap GS which is actually a DT Swiss 240) to a shop a while back as I'd done something silly and managed to jam the ratchets together. The mechanic removed them, but then said there is a problem with the hub which he could not fix, but I couldn't understand what the problem was. Here's the picture - is there actually anything wrong with this or should I just reassemble it and see how it goes?
a55a94fc-a4d3-4b75-9fc9-014ad50cb14e~1.jpg

Also here is the hub diagram:

https://sram-s3-public-docs.s3.us-east-2.amazonaws.com/powertap-drawing-gs-hub.pdf
 

gbb

Squire
Location
Peterborough
Not conversant with these hubs but look at the splines at 10 o'clock...they look stripped away.
 
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