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That's not bad. Should see my MSD tach drive..... I've cleaned multiple times and even POR-15'd it. I'll see if I can find the thread.
You probably want to do something with that since it seems to be flaking/releasing/powdering off..... may end up affecting the ignition spark. My MSD looked worse but did not seem to flake off like that.
FYI...
If you pressure wash the engine bay cover the dist, alt., etc with a plastic bag to keep excess moisture out.
Remo e the bags and drive thecar to dry out electric devices.
No pressure washing or any of that has occurred. My MSD rusted like that for no good reason. It's been garaged for 30+ years in a temperate climate. My old Mallory that's been in the same garage and is probably 5-10 years older shows no (NONE) rust at all.
That MSD has never failed me andit is quite old now.....but really.... c'mon now -- I paid for quality.