Unless you're using a medium that doesn't support several inches of complete soil saturation at the bottom of the pot (perched water), you're over-watering. The tip-off was "Watered when top inch of soil [felt] dry". You should water when the soil at the bottom of the pot shows dry or nearly dry. Use a TELL to 'tell' you when to water. I'll post something I wrote about using a tell and the limitations associated with excess water retention (or over-watering).

Using a 'tell'

Over-watering saps vitality and is one of the most
common plant assassins, so learning to avoid it is worth the small
effort. Plants make and store their own energy source –
photosynthate - (sugar/glucose). Functioning roots need energy to
drive their metabolic processes, and in order to get it, they use
oxygen to burn (oxidize) their food. From this, we can see that
terrestrial plants need air (oxygen) in the soil to drive root
function. Many off-the-shelf soils hold too much water and not enough
air to support good root health, which is a prerequisite to a healthy
plant. Watering in small sips leads to a build-up of dissolved solids
(salts) in the soil, which limits a plant's ability to absorb water –
so watering in sips simply moves us to the other horn of a dilemma.
It creates another problem that requires resolution. Better, would be
to simply adopt a soil that drains well enough to allow watering to
beyond the saturation point, so we're flushing the soil of
accumulating dissolved solids whenever we water; this, w/o the plant
being forced to pay a tax in the form of reduced vitality, due to
prolong periods of soil saturation. Sometimes, though, that's not a
course we can immediately steer, which makes controlling how often we
water a very important factor.

In many cases, we can judge whether or not a
planting needs watering by hefting the pot. This is especially true
if the pot is made from light material, like plastic, but doesn't
work (as) well when the pot is made from heavier material, like clay,
or when the size/weight of the pot precludes grabbing it with one
hand to judge its weight and gauge the need for water.

Fingers stuck an inch or two into the soil work ok
for shallow pots, but not for deep pots. Deep pots might have 3 or
more inches of soil that feels totally dry, while the lower several
inches of the soil is 100% saturated. Obviously, the lack of oxygen
in the root zone situation can wreak havoc with root health and
cause the loss of a very notable measure of your plant's potential.
Inexpensive watering meters don't even measure moisture levels, they
measure electrical conductivity. Clean the tip and insert it into a
cup of distilled water and witness the fact it reads 'DRY'.

One of the most reliable methods of checking a
planting's need for water is using a 'tell'. You can use a bamboo
skewer in a pinch, but a wooden dowel rod of about 5/16” (75-85mm)
would work better. They usually come 48” (120cm) long and can
usually be cut in half and serve as a pair. Sharpen all 4 ends in a
pencil sharpener and slightly blunt the tip so it's about the
diameter of the head on a straight pin. Push the wooden tell deep
into the soil. Don't worry, it won't harm the root system. If the
plant is quite root-bound, you might need to try several places until
you find one where you can push it all the way to the pot's bottom.
Leave it a few seconds, then withdraw it and inspect the tip for
moisture. For most plantings, withhold water until the tell comes out
dry or nearly so. If you see signs of wilting, adjust the interval
between waterings so drought stress isn't a recurring issue.

Al

So you think this is from over watering? I've watered it a total of 2 times since I got it 3 weeks ago. I water until it drains and don't let it sit in the wet tray. Could this much damage come from just 3 weeks with 2 waterings? Could this be stem rot from bacteria or fungi?

Fungal infections are much more common than bacterial, but it could be either. It's very possible that the infection already had a foothold before it came to live with you, so don't be too hard on yourself. The woodier a plant's stem is, the longer it usually takes for the fact your plant has the fungaluglies to become apparent, so no telling how long it's been an issue. Generally, the prognosis for plants with the symptoms you described is not good.

Let me know if you think this is of value, please (click me).

If you think your plant is salvable, this should be worth a read.

Al

Thanks! Those posts are extremely helpful!!

If I try to save the plant, will she put my other plants at risk?