Ugh that sucks

Was hoping it was just something simple with the belt so it would be an easy fix.
The scratch is in the service area? So maybe it's messing up the carriage knowing where the "start" position is. I guess that would explain the scan axis fail 87:11 you got earlier.
If you're looking to replace the encoder strip anyway and have nothing to lose, then you might try to polish the scratch out. Many years ago when I used to build fine scale models I would use wet-dry sandpapers with very fine grit number to remove scratches in paint, and then use toothpaste as a polishing compound. It works very well.
You could start with the toothpaste, I suggest rubbing it back and forth along that part of strip with your finger, to see if it removes or reduces the scratch. If it doesn't seem to be having any effect, you could go to say 4000 grit wet sandpaper and try gently rubbing with that, or a lower number if needed. Once you get the scratch reduced then work way back up the sandpaper number scale and finally finish off polishing with the toothpaste.
Even if you buy a new strip anyway it might preserve a spare for you.
Edit: if you have a Dremel tool you could use that to assist with polishing etc, just be very careful of the speed and grit rating of whatever you use.