After further inspection I think it will be fine if I run a die on the threads. The sludge was mostly from the nut as far as I can tell.
One thing of note though, the crank flywheel nut (on the clutch side) appears to be standard right hand thread. No wonder she blew out. I got the reverse thread info from the rebuild thread on this site, guessing it may not apply to all years...
Attached pic shows right hand thread, just as a sanity check I unbolted the flywheel nut on the ignition side, and it was right hand thread as well.
Picture has a lot of fuzz on the threads from the shop towel and brake cleaner. Threads look worse than they are.
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