Me either...I cannot believe that this was one framing contractors "fix" for a bolt in the way.
Shameful...
... I'd be looking closer at why and how that blue stuff at grade level wound up there...
Nothing to worry about. The anchor bolt got bent over some how. The sill plate has enough bolts or they may have drilled in a new anchor. It is not rebar or reinforcing steel just a connector for the wood to the concrete. As everyone has said cut it off buy a little epoxy and wipe flush. If that is all that is wrong with the house you are in good shape.