Those little pieces of rubber are from the center seal. The grinding is from the center bearings. If I was C.S.I. the cause of bearing noise is due to the seal leaking and water eroding the bearings. But I’m not CSI and I’m not there , although there isn’t anything else that would cause thes exact symptoms . You might notice some water ad oil under the washer too
This washer would need new center seal, and bearings. I’d take a good look at the gear box. Water could have mixed with the oil. Sometimes when bearings fail the threads on the drive shaft and agitator get damaged. If damaged, they’d need replaced. The repair cost at that point wouldn’t be cost efficient. Put your money on a new washer.