Help! what is this?

So, I have been dealing with a variety of problems, however this morning I discovered something I have never seen before.

It might look like caterpillar damage at the top, but there are no caterpillars present, no droppings, or sections they have eaten and the surrounding leaves went from green to brown basically in a day or two.

Bud rot (botrytis) cut it all out and throw it in the fire. It will spread like wild fire if you don't.

okay jeez thank you!
So for context, I live in a SUPER dry climate, however we had a freak rainstorm 2 nights ago and it rained at night for about 6 hours. Then the next day I have this bud rot.
SO... I cut all the visibly affected areas off, should I destroy all the buds I cut or can I cure regions that arent damaged and smoke them?

Also, more importantly, how much does the bud rot spread if it is no longer wet but actually very dry? Im worried It will spread if I go to spray my Safer Caterpillar killing spray on them now.

Awww, I'm sorry buddy, I really do feel for you. This is the season for botrytis and we see more and more of it every year as the steady march towards legalization continues, and more growers attempt outdoor grows without a good IPM program. Jimmi is right, all you can do is cut it out during flower. With this stuff, prevention is the best cure and all you can do is put in place a serious IPM program next year. Biological fungicides, neem, regalia, aspirin water, chitosan, all excellent to put into a weekly foliar rotation up until buds start forming, but that won't help you now.

A little rain spread the spores that were already there all over the place, that's all it takes.

Yea ply a bud from the stem where the leaves are dying and check inside, you will know straight away the bud will be soft and fall apart quite easy.