^Yes, that needs to be replaced. The rubber is pulling away from the metal core that the bolt runs through.
I did that job this summer- everything went smoothly until I went to the parts store for literally 10 minutes for an exhaust stud and my buddy decided to "nudge" the bushing in the last few mm's with a BFH. The aluminum casing around the bushing snapped. He bought me a nice used TC. And is making me an awd go-kart with the other.