I’ve always had coolant under the water pump and on timing cover, but never lost enough to have to top it off ever. Looks worse than it is (I hope, ****...) but look at this thing I circled. Is that a hole busted through the timing cover??

Circled area in question, looks like a breach and possible rust from water. Is this a problem?

 

No, thats not on the timing chain cover

Look here: https://www.jegs.com/images/photos/0/059/059-vfwf.jpg

You can see where crank sensor bolts on, and the two lower bolts for the cover on that side
Its just part of the block casting, they grind the front flat but that low spot stays as is, rough