Here are more photos

Something clearly happened to the top, but it should be fine. People will lop off the whole top and it’ll grow new ponytails around the cut.

If you look closely your little friend looks like it’s already getting new growth🙂.

I’m curious did you just notice it one day or has it slowly been happening?

Just keep an eye on the center growth if you notice the brown spreading you will have to cut.

Thank you - I just noticed it - I’m not sure how long it’s been - but thank you for pointing out the new growth I didn’t see that I’ve been very worried.

Sadly the new growth gets brown and dies and the cycle repeats

The most common cause of crown or root rot in a ponytail palm is going to be over watering and/or poorly draining soil which is much like over watering.

How often does it get watered. Is it getting overhead spray? The plants next to it don't look like dry/xeric type plants.