Learned that Chondromalacia was Grade III. That is a thinning and degradation of cartilage that can go down to bone. Bone is the sensitive area of pain. Grade IV is bone on bone.
Surface was scraped to induce bleeding, which will help build new (albeit inferior) cartilage where the holes are. That takes about 6-8 weeks to happen. Working on building back Quad strength to take pressure off kneecap. Still somewhat unsure how this happens, scientifically.
This road to recovery has been amazing in terms of the difficulty and the level of knowledge and patience I've developed. Hopefully this is the beginning of the way out.