Background:
The house was built in 1983. Previous owner(s) have been creative on some DIY projects around the house. The receptacle was wired half direct & half sideways.
Problems:
The switch on the right of the combo controlling the fluorescence lighting in the kitchen ceiling no longer works. The receptacle on the left, (Both HOT), working independently from the light switch also no longer working and there's some debris inside some of the slots.
These are the parts I purchased that are similar to the old parts.
The pigtail actually is a mystery, it fell out when I removed the faceplate. I would appreciate some feedback on that and see if it should be replaced and rewired correctly.

A picture showing the breakers placements.

Issues to rectify:
Replacing everything as is safely. Will work on having upgraded when we will redo the kitchen couple years down the road.
Welcome any constructive feedback and thanks in advance.
BELOW ADDED AFTER INITIAL QUESTION BEING ANSWERED.
Seeking more clarification and also acknowledgement on my understanding of the suggestion, a few more questions if you don't mind as it's my first time dealing with such a situation.
Here's the self-ground receptacle that I just purchased from a home hardware store.

This set of wires to be attached to the receptacle, right?
I was going through my notes of the old set up where the red (top) & black (bottom) were wired at the back. I will be rewiring them on the sides this time to increase the reliability, so the red should remain on the top screw and black on the bottom? I will also break the tab in between the screws.

As for the other 3 black wires, I am a bit confused. So, I labelled them 1, 2 & 3 in the picture to get a better perspective.

Just wondering if I understood correctly, so the capped one (3) should be uncapped and wired to the switch?
Additional findings since I first posted, I found out that lights both indoor and outdoor by the front door, a set of lights and an exhaust fan of the guest washroom, a kitchen ceiling light with a dimmer and also a range hood are all wired to the first breaker with the fluorescent ceiling lighting as well. Just curious... is it acceptable to have so many items attached to 1 breaker.
Thanks again for all your feedback and help.

