Scaly growths on older rosemary stems are bacterial galls. Not fast-spreading. Keep the plant until it becomes too unsightly.

Grape Tube Galls: Midge-Caused, Harmless
Forsythia Crown Gall: Pruning Out Bacterial Disease
Are Creeping Rosemary Flowers Edible?
Growing Cumberland False Rosemary in the Garden
Identifying Deer vs. Rabbit Damage on Garden Plants
Bacterial Leaf Scorch on Oaks: Diagnosis and Distinction from Drought Stress
Rosemary: The Ideal Full-Sun Container Evergreen
Tomato Bacterial Wilt: Identification and Management
Growing Rosemary Indoors: Tips for Success
Pruning Leatherleaf Mahonia: The Nandina-Style Method for a Fuller Shrub
Aging Rosemary: Woody, Flowering, and Ready for Replacement
Large Oak Trunk Gall (Crown Gall) May Not Kill Tree for Years
Witch Hazel Gall Aphid on Fothergilla: Cone-Shaped Leaf Galls
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