04 Suzuki RMZ250 Help if possible.

Ok guys I know this is a Honda forum, but the suzuki dirtbike forums are dead and I’ve ran into a problem that I’m pretty sure I know what the problem is, but I wanted to consult the mechanics here first.

Going over the bike that I’ve been rebuilding cause it needed a new frame, and I notice oil seeping from the hole on the left side of the motor where you would use a 17MM socket to turn the crank, so I remove the plug and a whole bunch of oil came out.

Does this just mean the seal for the magneto is bad, or more?

And I also found a grey hair like looking material on the plug for the crank hole??????

Thanks for any help guys.

Dj