Teeth do look a bit worn, but it's probably the same problem most of the "windlass on shelf under anchor locker lid" installations on Bavarias have with not enough of the chain being led around the gypsy, leading to jumping, which leads to premature wear on the teeth.
So the first thing to do is make the modification where more of the chain is led around the gypsy to prevent the jumping. That alone may solve the problem - if not, you can still replace the gypsy. Thread about this somewhere around here, just can't seem to find it right now!
The piling up of anchor chain is normal, the more chain you have, the more it piles, and also as the galvanizing wears off the chain gets stickier and piles more. The solution is to knock it over as you retrieve it. Most boats have to do this - you can hear the loud rattle of a pile of chain in the locker from afar when someone picks up anchor. Or, for the price of a watermaker, switch to stainless chain (which is much more slippery and thus piles up less).