The panel is a 200 amp, which in '92 allowed 40 breaker poles. The tandem is not allowed in that panel. The discoloration looks more like some type of chemical contamination than heat damage, but still may be a concern. There is some obvious paint overspray. I don't call out Challenger panels just because of their brand, particularly the newer ones like in your photo. There are many examples online of some failures of these panels. I have a pretty extensive photo library of failures on ITE, Siemens, Square D, Cutler Hammer, and others. The Square D breakers are not listed for use in that panel. AFCI breakers were not available in '92, so there really is no "listed" AFCI breaker for that panel that I know of......possibly Siemens, but doubtful. I think providing the AFCI protection is a positive safety upgrade that outweighs the non listed breaker issue.