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So I did the above to prevent rot from taking hold and eventually leading the tree to split during a storm.

I did something similar to a large oak tree that is a "V" shape and it had a hollow in the middle that collected water. I have no idea if these materials could all be used together or if there would be toxicity concerns for the palm or of any other issues that might arise. Once dry, you could even paint the tar a color that would better match the trunk so it is less of an eyesore. After that, fill the hole most of the way with "Great Stuff" expanding foam and sand this flat once dry, then apply a thin vaneer of that sealant tar. After that, I think they make products you can spray on wood or other surfaces that will dry and are supposed to suck the residual moisture out of the surrounding material it is applied to. Then, dry any moisture with a towel or paper towels. What if you were to use a paint scaper or something similar to carve out the loose material within the hole, until you had clean margins of healthy tissue.
