This was a heart-breaking observation. I'm wondering if this is the beginning of Beak and Feather Disease (or is it advanced?). If so, that's concerning for this population of birds, given we are heading into nesting season, and the sociability of gang gangs as they check out available hollows.
This distinctive female is known as "Crooked Beak"
The female was trying to chew around the hollow but couldn’t. The male was also surprisingly lethargic - a chew here and there, but not the usual gg cheekiness :(
As you say a very sad observation. I am not sure if this is Beak and Feather or if it is due to an an injury causing a miss-aligned beak which would then continue to grow. The claws and feathers look fine so I would lean to the latter suggestion. If the latter there is the possibility that the upper bill tip will break off.
Given the well-searched area this is either a new problem or the bird that has coming in from somewhere else. All we can do is ask contributors to post any sightings so that like Baldi we can gather additional movement information.