dry out the wood and do this where the insects or what ever living thing can leave.
There are many dips that you can use to soak the beam in to preserve it. many I know of are purple in color. Get a clear dip.
The gouges and rough areas do just add character. But If you have a planer, or belt sander you can take the wood down to nice looking wood and work from there.
I would take the beam into a carpentry shop that has a mechanical plane that will accept the beam. Be sure and remove any metal or foreign material.
Fly your flag.
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