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I started a new 00 after returning from a fantastic week at Blues Creek. I decided to use up some old stuff and the pictured rosette got picked for the 00. But it has an old age separation (about 11:00 position in the pic) that I figure I could close with a razor saw scarf cut. Or I could fill the gap after inlay. What would you do?

Ps the price sticker is $2.50; its 40 years old.

Whoops just noticed that the rosette has a top. still try to fix it. I would leave it until the channel is in the top and then see if it will fit in it the channel. That may close the gap. If not cut it at the top of the rosette separate the purfling from the wood with a bit of heat until you get to the separated area. Cut enough out at the top of the rosette so the purfling ring will close and then glue it into the channel. No need to glue the purfling back outside of the channel.

Thanks!! That's so logical, I'm going to go ahead and do it right now. This thing is as hard as a rock and won't compress, so separating the purfling will definitely be the way to go.

you have another option
once installed if you are not happy with the repair , BEFORE you cut the sound hole out , you can then rout a tiny line and inlay another maple or black.
You can also cut a pickguard to hide the fill

The bubble came out with a little heat and cutting under the FB extension, however, the rosette was originally for a parlour guitar/size 0, too small for the 00-12 as I realized a bit late in this distraction. So now that's fixed with no where to go. A pickguard would have completely covered the separation and it would have been easy enough to rout out space for some purfling. All in all a good exercise.