Is this even remotely repairable? (pic)

I'm more than embarrassed to post this pic but I'd like to get some input on what I can do with this. The clear has been peeling in this spot for a while now. I've honestly just been putting off dealing with it since I was planning on repainting it next summer. However since we're getting into the winter season I'd like to prevent any damaging rust until I can really focus on overhauling the whole car.

I don't know much at all when it comes to paint work. Is it even possible to wetsand the edges on this spot and blend in some new clear for protection? I'm not expecting any miracles, but something that looks decent.

On a side note, the car has been sitting out in the weather for a while and rest of the paint has some pretty nasty buildup. I was going to clay everything this weekend but have a quick question. Should I use some kind of polish or rubbing compound before I clay?

Thanks

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