It looks like the insulation is intact I have seen much worse. I would leave it as is even the ground. If you do need to change any of the spade / disconnect fittings make sure to get high temp ones, standard female connectors like mni10-250dfix will not hold up well to the heat, with the thermal cycling they become loose and will burn the end off. I learned this years ago after repairing an oven and the new ends did not last long, I use high temp (900 deg) ends like FR9C-250. What you have there looks ok to me and is quite normal at when element entrance area so I would say it is ok.