Is this bad? Ie. Is the top seal required? The cap still locks and if its the inner seal that seals it, its ok.
Not good. Is that a metal tank or plastic? If metal, the neck can be replaced. If plastic, new radiator. Dave
The big diameter rubber seals the system at the flange, the small diameter rubber seals the connection between the radiator overflow and your expansion tank. It acts as a check valve to allow water to return to the system as it cools.