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Damn. That's beyond worn out. I cannot say I've ever seen that happen though.
I couldn't believe it either. I sat there staring at it for like 5 minutes trying to figure out if what I was seeing was actually real. I've only put a few hundred miles since buying it (since I was deployed for the past 7 months) I got home 3 days ago and started doing a bunch of preventative maintenance for an upcoming trip... good thing I decided to do the brakes! Surprisingly they didn't make any noise or grind, they were just feeling a bit too soggy for my liking.
I would say every bit of service life was gotten out of those. At least you caught it. I would make sure to flush the brake system too with new fluid. That was probably neglected by the POs too.