Prolapsed penis

My male chin, Jack had prolapsed penis for almost 2 months now.

Visited exotic vet several times, did anaesthesia two times,
Did urine analysis, sample collected and sent to the lab,
Small cut made on penis to figure out whats happening

So conclusion was, there is a small lump made of white fibrous tissue
On base of his penis thus penis can't retract back into the sheath.

Surgery is possible to cut the lump and there is possibility that the penis retract back theoretically but they never tried it thus they can't suggest it.

However, vet said, he have a special condition now that his penis is prolapsed
But he seems healthy (eating.drinking.urinate.poop all fine. No dental issue, no hairring) and his penis seems ok to be prolapsed according to him.
And his penis cannot be pulled out for full length.

Problem is, I think friction on penis occurs when he moves around.
I found a scab today on his sheath.
Vet said lubrication is not necessary, but can be helpful thus I lubricate it daily or once in two days.

I don't really want to let vet do the surgery as they never did it before
(They are only vet that can do the medical check for chinchillas in my region)

But is it better for him to do the surgery?

I will include the pic of his penis condition.