Agreed, this egg needs to be disposed of, it's broken and no longer viable, and is only going to cause a bacterial growth.
Yes, those deposits are pretty bad, and this is a sign of calcium and vitamin D3 deficiency. You need to make sure your birds have constant access to a calcium block, cuttlebone, and this looks bad enough that I would try to get the bird to an avian vet for a calcium injection if possible. You need to find a supplement that contains vitamin D3 and calcium and add it to your bird's food daily. What do you feed your birds? They should be on a high quality pellet and fresh veggies diet instead of seeds.
In the meantime I wouldn't be breeding this hen, every egg she lays is sucking more and more calcium out of her. The most likely outcome will be this hen becoming egg-bound, which I'm sure you know is quite often fatal.
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