to me it looks like that pin on the regulator REG401 is just covered with tin. Would you say that it is burned or tinned?
The LM1117 has output short and overtemp protections, and is very robust. Check the output voltage, must be 3.3V.
The device will probably work also with C406 broken. Quickly browsed the circuit diagram, +3V3 supplies the digital part, and they have 100nF local bypass caps all around the place.