I opened a 2-gang light switch-box on my wall (to determine if there happened to be a neutral inside), and I found this fraying/damage to the insulation on the wire pictured below. I couldn't tell for certain, but this wire may have been larger than the others in the box. Both light switches control fixtures on the same circuit.
What could have caused this type of damage inside a switch box? The grounding tab at the top of the switch looks like it might have been touching/rubbing against the wire, but it's hard to imagine that caused all of this.
How worrying is this, and what's the right way to repair something like this? I am a novice, and will probably end up calling an electrician here. I have temporarily put some electrical tape around the grounding tab at the top.
I am assuming that the white flecks on the black wire coming out of the wire nut is paint. The home was built in 1983 (in Oregon, USA), and other than minor issues like back-stabbed switch/receptacles and a few grounds that weren't attached, the work has looked solid so far.
This also might not be a true two-gang box, but instead two 1-gang boxes that were cut together? Note how the foam cover on the right was cut to size, and the gap between the left and right boxes where they meet in the middle.