Rotted strut bushing in a w124?

[Hydronuclear]

My front drivers' side (87 300e) has been squeaking for a while when I begin turns for a while now. Whenever it would rain, however the noise would dissapear for a few weeks. I had my wheel off trying to pinpoint the sound when I noticed HALF of an orange bushing in the strut dust jacket. I pushed it back up into the housing, but am wondering if I need to go and purchase new struts, or if I can replace the bushing. Thanks for any input. Would WD40 be a temp alleviation for this rotted bushing, or should I be leery of spraying lubricant on a strut? Thanks!