2021 Axis 750 crew having shifting issue and found milky oil

[BMurph]

Hi everyone. I am new here to the forum and am excited to learn from all of you with more experience than me with UTVs. Our Axis750 we use on the hobby farm started to have some issues going into gear. Yes, foot is on the brake and completely stopped as required with these machines. I thought it was the linkage and adjusted it to where it is accurately shifting with the engine off and key in the on position. I start the engine and it won't shift gears (yes foot is on the brake). I thought maybe it was the shift lever teeth so I opened the assembly and this picture shows what I just found. I assume this means the wet clutch would need replaced too while draining and flushing the oil. What else should I consider or be looking at? Any idea what could cause this? I don't see visible leaks or cracks in the system anywhere. Thanks in advance for the help!