Oh fuck!!! thats not good.
but it won't be a catastrophic condition either so long as the circlip is properly seated to retain the bearing.
I would offer only this advice;
There are companies that can spray metal, yes molten metal, as in building up old school spindles.
I don't know the specifics but what you have can be built up and remachined just like the spindles.
It's essentially a much more finer process than welding up an unnecessary big ass bead only to have to turn it back down a couple of thousands smaller than what you started with.