The roots look funky brown. I think the plant needs a better medium so the roots can breathe. Moss can hold too much water. Although yours looks dry so its a little confusing from photos. I think you should find an orchid mix quickly and remove all the moss, cut off dead roots, and plant in an orchid pot with a lot of drainage.

Agree with Lily. This plant needs repotting.

It appears you had crown rot. The plant might make a basal keiki which is a new plant. I don't believe your Phal will grow a new leaf.

Jane

It has a new spike starting to grow. Should I go forward with the repotting??

Phals are pretty hardy, but this one seems a little precarious, and repotting may cause that spike to fail.

Maybe, instead of a full repotting, just gently pull out some of the yuckier looking stuff in there, and make the pot more airy. I have a long pair of tweezers that I use for this, just to loosen some of the moss around the roots. This will keep it happier long enough to enjoy your flowers, and repot it after.