Burgundy princess

I've had this burgundy princess since 2020, and she was being neglected, as well as struggling. And this was the original plant with no leaves. I stuck her out this summer, zone 5, and was getting ready to repot her to bring her in and noticed this growth underneath, as well as what seems to be some softening of the original stem/ trunk. Any suggestions on what somebody might do? It looks like her coloring from the the pink princess, which I understand burgundy princess is a reverted pink princess, maybe coming back. I'm thinking of cutting it off and potting the original root system with the curly new pink growth, and then I think I need to somehow cut the top growth again, but I'm not sure where.