What you see is chrome peeling off from steel.
It can happen even with good material that’s been damaged by rust.
So for a rust-damaged item, it’s normal.
Polishing can remove the last of the chrome to create a uniform surface, but won’t restore the original shine.
In financial terms, they’re beyond repair.
In practical terms, they’re still OK to use.
You could send them off to be re-chromed, but it’d cost a lot more than buying new parts.
The ”headset spacer” isn’t a spacer. It’s the top race of a threaded headset.