Even back when these differentials were common in vehicles, it wasn't uncommon to see pro shops that did not have the proper hub nut/bearing adjusting nut sockets in their tool boxes. So out come the hammer and big screwdrivers!
If they were even aware that the outer lock nut needed at least 75 lbs to get close to spec, they would have opted to find a proper tool or tell you they could not do it.
Unfortunately, it looks like there are still shops that don't know the proper procedure but will take on the job anyway. Bummer.
Sorry to hear you're going through this.
I feel that some light bluing is acceptable, but a lot is not. And I don't like the look of the worn area either.
If it was me and I had to get it rolling right now, I'd run them temporarily and only on light low speed duty (little to no freeway trips in other words) until I got a new one.
Or drive something else if that was an option and just get the new one and wait until then to put it back together.
Yes, many people have run spindles as bad as yours, and worse, but it's such a critical part of the driveline (and I sell new ones too!

) that I definitely recommend a new one.
Good luck.
And adjust them yourself if you can. That way you "know for sure" how they were done.
Paul