Well, the plot thickens!
I found this little booger sitting in the void between the side step and the wheel well driver’s rear wheel where the smell was coming from). Not sure how it held on for the ride, or even how long it’s been there...
However, it looks broken rather than melted.
also, very possible a little kid was playing hide&go seek with it. Just saying.
Here’s a recap on what I do know:
1) I definitely over reacted about my wheel flying off. Not having cell reception does weird things, and I’m not even a millennial.
2) I went ahead and backed off 2 clicks on the parking cable (access from under the cup holder)
3) I increased my rear psi to 40 (cold)
4) the tire that I thought was melting used to be a front steering tire, so that explains the rolled edge, but not the weird melting ripples (but many have said the ripples are normal wear)
5) I took a quick peek at my exhaust hanger, and looked fine. I only have one as I side exit to the driver’s side.
which brings us back to the burning rubber smell (I would say more rubber vs brake).