I don't believe that this damage is anything to do with the tangential tracking system.
The cause is more likely due to abuse by the user or to transit damage exacerbated by idiot eBay sellers who send these decks through the parcel courier system with inadequate and/or misplaced packaging!
If I buy a deck on eBay and have it shipped to me, I now assume that I will receive a box of bits. Anything better than that and it's a bonus.
Over the years, one deck has arrived wrapped in one sheet of brown paper and placed in a cardboard box and one was wrapped in a sheet of newspaper!!
The cartridge in the picture could possibly be repaired and retipped providing the coils are still OK. Remove the cartridge and measure the resistance across opposite pins on the rear. Open circuit means that the cartridge is u/s, a low resistance means that it is OK and can be refurbished by Axel.