Not only is both upper and lower bearings completely ruined, but the races are destroyed, too.
It's time to look for a new bike, I'm afraid.(there are other issues with the bike, too. This is just the final straw)
Now, if I could only find a new bike with 27" wheels so that I can fit the EL motor, battery and electronics onto that. (The old bike was converted to electric by replacing the old rear wheel with one with a 250W hub motor. I can get it out of the old wheel, but 'lacing it' into a new 28 or 29" wheel is way beyond my skills. )