Gentlemen, Ladies
This appears to me as back drafting, Inlet nipple has melted. Your thoughts are welcomed.
Looks to me like a 15-20+ year old WH that needs replacement!
My thoughts?
Report it an move on.
It’s broken.
My first thought is, wow, someone actually put a screw in the draft hood.
I think you are right on the back drafting.
What kind of a home inspector does not perform a draft test on a WH???
Do More charge more
You don’t know what you don’t know until you know;-)