Is this okay? 😬

I got a 'Too Good To Go Bag' from my local garden center and this Kalanchoe was in there, the soil was super wet and soggy, I decided to repot as it was also really unstable in the soil. This is the root system, you can see there are newer fresh roots higher up but I'm concerned about the lower roots, some of the green bit of stem at the bottom is a little mushy, do I chop it all higher and pot it? Also the lower roots bit seem like it's hollow inside the stem. Any information would be appreciated 😊