Thanks for the advice.
To answer the questions: pot is glazed, top dressing is an inch on top of weed block fabric. It gets direct morning sun thru early afternoon.
Is the rot mainly due to overwatering (black spots- but jot mushy) different than the scabs further down the trunk (sunburn)?
I've stopped the watering a couple of weeks ago and will remove the dressing.
Ok, so how much to trim?
Picture 1, line 1 or 2?
Second picture is the other side of the same trunk.
Should i trim as far down as 3?
Third picture shows the scabs further down, which i assume i can let alone despite being unsightly.
The last picture is a trunk I separated off of this plant when it was repotted last year. It's doing quite well despite the scabs!