Damaged Exhaust wheel, What Cause This?

This is off my STS T60-1 turbo. I bought this kit used with about 1100 miles on the brand new turbo from Jason at TSP. He also sent me the tune. I've only put another 1500 miles on it since then. I pulled my turbo to change the housing to a .69 A/R exhaust housing to try to get a little more boost down low with the small 4.8 motor in my truck. But it turns out the .69A/r I got is apparently for an O trim and not a P trim wheel, so it wouldn't work. When I pulled the housing, I found this. I know the pic is a little fuzzy, but you can still see the damage. The turbo is still working ok and builds boost. I'm only running it at 7 lbs and according to my wide band I got the other day it is running really rich at WOT 9.8-1 AF, so it shouldn't have burned it off from running lean. Any ideas??
Edit: yes I still have factory, unmodified cats. The truck only has 30,000 miles on it.
Edit: yes I still have factory, unmodified cats. The truck only has 30,000 miles on it.
With a ultra rich 9.8 A/F you may have caused the cats to go bad and break up.
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With a ultra rich 9.8 A/F you may have caused the cats to go bad and break up.
I know Jason said he ran this thing pretty hard, 15+ psi on a 4.8 with a stock fuel system and a ton of meth. I've got a good fuel system, intercooler and am only running 7 psi and 18* of timing under boost.

