Those dielectric unions look brand new. I'm guessing they didn't have them, they failed and saturated the fiberglass. THEN, someone replaced the unions and put it back in service?
OP's water heater looks like many, many typical rusted out water heaters. Nothing strange about the appearance, just few people have seen even one water heater wear out.
Strangely, it has been my experience dielectric unions cause water heater premature failure, NOT prevent it. I do not use them anymore and have had much better results.
I have always been told never to mix galvinized with copper. Even at different parts of a water system due to the galvinized partials transferring through the system and eating at the copper. Has anyone else seen this or heard of it. I'm always up for correction or reproof if I can learn from it.
i use brass nipples on my water heaters
do not have any problems,
i even,, put a tee in a vent line, about 7' off the floor with a 2'' ptrap for ac drains
piss on running 40' of pvc that backs up every year do to algee
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