Anyone ever seen this happen? Both front shocks are sitting way proud of the mounting block.

Not good! One shock appeared to be spinning and twisted the lead off as well.

 

Seen like that? . . . no . . . not ever!
Where is the rest of mount?

"Not good"? You're too kind!
New purchase? Never serviced?
Get entire car inspected by a pro shop.
If replicated elsewhere, "Dangerous".

Best wishes,

Ken

 

Your upper mounts are shot. I would recommend new upper mounts and shocks front and rear. If you stay with the cats shocks youll be sticker shocked. But you can change them all for usually less than 2 cats shock with non cat shocks. And to get rid of the cats system fault message that will come up in the message center simply unplug the cats module in the trunk. Oh and you will need a aligmnet when done as the ride height will change.
1 other thing, if your mount look like that i would bet the rest of your suspension is in similar shape and youll need more than shocks and mounts