Hint: I’m “a frayed“ of this cord.
See the answer below.
I think it is safe to say that this damaged cord violates the intent of Sec. 110.12(B), which states in part that “there shall be no damaged parts that may adversely affect safe operation or mechanical strength of the equipment such as parts that are broken; bent; cut; or deteriorated by corrosion, chemical action or overheating”. The split-open cable jacket and cracked insulation are certainly creating an unsafe condition. A closer look reveals there is bare copper conductor exposed due to the deteriorated condition of this cord. This can create a real shock and fire hazard. If a person were to make contact with the exposed energized conductors they could receive a deadly shock. The damaged insulation could also cause dangerous arcing, which could result in a fire. This equipment should be unplugged and removed from service until it is repaired or replaced. I am not sure if it was gases, fumes, vapors or other agents having a deteriorating effect such as extreme heat that caused the damage to this cord. Whatever the cause, Sec. 110.11 makes it clear that any conductors or equipment must be suitable for the environment in which they are installed.