It's hooked to the low pressure port meant for the 'sidekick' or rvq type grill. DH modified the Weber by removing the regulator, and adding the quick connect male piece (via some sort of coupler). He then got another female quick connect end, and coupled it to the regulator so he can snap it back on and use it with a high pressure source if necessary. I don't have pics right now, but can take them another time.
Looks like abuse did the Sidekick in, expect the same results for the new one if treated similarly. We've used ours constantly for 3-4 months each of the last 3 yrs and it doesn't look anything like yours. Of course we clean it occasionally.