Thank you. When I looked at the trunk and roots they're yellow until the soil line where it turns into normal trunk color, and I read somewhere that yellow can be fungus? This question may be foolish but by 'burnt leaves' do you mean it's getting too much sun?
My honest first thought on seeing your picture is that the plant is going dormant. I've been encouraging mine to head towards dormancy so I can set them on a shelf and forget about them for the winter
Here is my grafted obeseum:

And my from seed this past spring arabicum:
I don't know if you're keeping yours outside or in the house. It's likely to try and go dormant either way. But if outside, it looks like you guys might be getting nights in the low 50Fs? If so, the leaves may very well be throwing in the towel for the winter nap.
I just went back out to pull my bigger plant because, why not? I'm not watering it again this year anyway

Cinnamon aside

...your roots look better than mine!
Which part of your picture is "squishy"? If it's the entire trunk, I'd lean towards under watered. If it's just the yellow parts only, you may have caught an early problem.
It's really hard to tell, but the pictures don't look that bad to me. It looks like a soil line. Is your soil organic? My experience with succulents, rot won't usually stop at the soil line...it keeps going. Succulents are not the same vascular system as trees. Once that soft tissue starts to rot...not much can stop it

Usually if you have rot, "squshing" the suspected rotted part results in your thumb poking through and grossness leaking out. Rot that's progressed tends to look a bit like an overripe apple...go figure! If it were rot, I'd expect to be able to pull those roots off with a gentle tug.
It IS possible, by the way, that the tuber is rotted and the roots aren't. At the rates you water, however, I'd not expect rot of the tuber before the roots. I'd really only expect rot if the roots were in a puddle. But I can't feel the plant to be sure
If it _is_ rot, that cinnamon won't do anything now. Cinnamon can help prevent rot from entering a wound but it can't kill rot inside the plant...it doesn't act like a medicine...and it's topical. If it _is_ rot, the best hope would be to cut the tuber well above the soft tissue. Put cinnamon on the cut end...topical and preventative work well here

But let dry for a week or two (it's basically a cactus...it won't mind) before even trying to put in a pot. Set it on a shelf, it really won't mind. It will lose the rest of its leaves, though. Don't water much until spring. I would ONLY consider doing this if it is only the yellow part that were squishy and I saw lesions or goo or other positive signs of rot.