Rear Wheel Bearing Grease Silver Gray. Is this Rear End Shot?

[Zener424]

Good day to everyone. Approximately 500 miles ago I installed new rear drums, bearings, seals, shoes and brake hardware. I packed the bearings with Pennzoil Premium Red Wheel Grease. Today I performed an inspection and found the grease is a caked up, silver gray mess (looks like "Never-Seez"). Also, I pulled the seal on the left drum hub, took out the bearing, and found it has unusual wear. The bottom ring of the bearing shows wear as if the ring was spinning and scraped the inside of the hub, several of the rollers seemed to have worn into the ring of the bearing. At the time I installed the new parts I did notice that the tapered spindle was a bit nasty looking when I installed the new drums, but the key fit snug, so I torqued the axle nut and I thought things seemed fine. They did not rub against the backing plates, and I didn't detect much play. What am I missing here? Please see the attached photos. I also noticed what I'm hoping is a scratch and not a crack to the back right of the key way.