I was put on Antibiotics and a nasal cream. After about 2 weeks I went into the ENT for another checkup. I got the all clear that my nose has healed up well. I'm still healing from the small area where the cauterization happened. And there is visible scarring from where I've been having this issue for so many years. It may well have been the antibiotics that finally cleared up the blood spotting and scabbing. I still have some light buildup on my nose, but not like it was before. Overall my nose is much more comfortable. I've been using my humidifier every single night set to 55% humidity. My nose hasn't flt this good and I haven't breathed this well in a long time. My mucus generally doesn't have blood spots like I've been accustomed to over the years.
Time will tell if this was purely a bacteria infection. Or a combination of bacteria and dry air. Either way, I feel like I have a better handle on keeping a healthy nose.