Well I went to sleep last night thinking about this and woke up ready to tackle it. Two jugs of coffee later I had it completed. Pretty easy actually. The rust in the above picture is just dust. The trim piece and nut had next to no rust, just rust dust. I have no idea why this fails other than it maybe a bad design and breaks upon over tightening. I've never removed the seats so it must have been like this for awhile.
Sorry for the hijack Dan, just wanted to share my fix.
This is the bolt from that hole. It came out easy and just has rust dust on it.
This is the nut. Next to flawless. Primer colored.
The backside has the 3 little ears that appeared on the trim piece. I think this is supposed be to break away.
Before bed I made sure I had what I thought I'd need.