Yamaha SRX600 : Big end failure, or something else ? Part 2 : Engine inspection

Trying to find the source of a pretty loud knocking sound on my red 1986 Yamaha SRX600. First thoughts were a Big End failure, however things are not always as they seem. I took off the clutch cover for inspection and found a few 'issues'. If this is it, it won't be too expensive to fix.