Hi there, once it sheds you'll be able to see more clearly. Right now it may seem larger because the shed is lifting away and of course the color makes it stand out. Beardies do develop lumpy chests which are termed " beardie boobs ", but they still at times may develop a tumor on different body parts. Can you give him a warm 10 minute soak and gently use a toothbrush to see if the shed will come off and then see if it looks so bad ?