The tool post grinder and the appearance of the machine make me think the operator didn't take measures to protect the machine from grinding debris or clean it properly after grinding. A death sentence for any lathe.
From my perspective, that lathe looks more worth the effort needed, than the anvil for $600! The lathe can be made useable, if not for precision work (which, lets be perfectly honest, most of us are NOT doing), at least for general shop duties, at least by appearances in the photos, inside a couple hours of scrubbing, and perhaps a session lifting off the carriage to see if there is any crap embedded in the carriage or ways that needs be dealt with.
Like the chick from school, so long ago, "She may not be the prettiest, but she'll get ya there!"
FWIW, most of my optimism is based on that really nice looking clear spot where the carriage was moved. Signs of it being long term storage in less than ideal conditions. A big batt of steel wool, half a case of WD-40, a wad of shop rags, and a sixpack, and you are well on your way to making it look a WHOLE lot better. BTDT, on a South Bend 9, that looked a WHOLE lot worse than that at the start...
Don't think of it as pitting! That there is "Oil Retention Texture!"