The Legend of Zelda: Breath of the Wild 2 was initially scheduled to release in 2022, but Nintendo has now delayed the sequel to the Breath of the Wild to Spring 2023. With this delay, new footage was shown, including Link wielding a broken and charred Master Sword.
This can be seen in the official delay video announced on Nintendo of America's Twitter and posted to the Nintendo YouTube Channel. It shows Link wielding a broken Master Sword at half its normal length. The destroyed tip of the sword also appears to be charred or corroded, as if it were burned.
Related: Nintendo delays The Legend of Zelda: Breath of the Wild 2 to Spring 2023
This leaves the question of why the Master Sword is damaged and will it have a major role in the sequel to The Legend of Zelda: Breath of the Wild. One theory could have to do with the state of Link's right arm. As the effects on the Master Sword seem similar to those on Link's arm.
The Master Sword is an important tool in Link's arsenal. It being damaged could have a major effect on the gameplay of The Legend of Zelda: Breath of the Wild 2. Link could be forced to find a new weapon, such as the Fierce Deity's Sword. It is even possible that there is a quest to repair the sword. Unfortunately, this is all speculation until more information is revealed.
For more information on The Legend of Zelda, check out Is The Legend of Zelda: Twilight Princess coming to Nintendo Switch? and All Stray Fairy locations in the Stone Tower – The Legend of Zelda: Majora’s Mask (N64/Switch version) on Pro Game Guides.