Looks like a crack in the 'stepper motor' case. I would use it, but it would be on my list to replace later. As far as I know, there isn't any oil that moves through there, so you should be good.
And yes, if it was fucked, limp home mode would kick in.
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1976 Mazda Cosmo RX-5
1976 Mazda Cosmo RX-5
2003 Toyota Tundra TRD
2015 Toyota 4Runner SR5
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