Have a friend who got extremely confused about seat post cutting and what minimum meant.. anyway, he cut his post far too short, first ride he raised it for climbing, then wondered whey he folded it off the back of his carbon frame.
Not a warranty for him. wouldn’t have made me physically sick.
Anyway, I digress, as it’s an old frame and you probably don’t need to adjust your seatpost height, simply epoxy that seat post in there and theres nothing to worry about 😉
Looks like a bit of corrosion/oxidation at the bottom of the frame pinch split though so the theory of it being swollen stuck are probably about right.