The beauty of Fox forks is that they are really easy to perform a basic clean n wipe service on them. Something the OP hasn’t done, oh well you live and learn.
You’ll see a few small grooves on the outside of the fork seal. Using a small screw friver (flat head that fits in the groove and with the metal tip covered by some electrical type) start levering the seal until it pops out. This will give you access to the foam ring (which you can lubricate with either 7.5 WT suspension oil or Fox Fluid)
Also using either a cotton swab with some grease get underneath the seal and clean the crap out. ALternatively you can stick two or three strip of electrical tape to the stanchion and lift the seal onto, and rotate it as you lift. Any dirt inide the seal will be collected on the edge of the strip.
Obv this won’t solve your problems but it will
a) avoid further damage to the stanchion
b) make your fork feel a lot better – i imagine it probably feels as bad as it looks
I ride 3-4 times a week and run a Fox 36 VAN from 2008 which i’ve had for 2 and a half years and i tend to carry out this process every week if i’ve been riding a lot. I’ll admit i quite enjoy it, but it also makes the fork feels smooth.