For sure the factory battery if noticeably puffed is compromised. If you could measure resistance, you’d see the cell that went south as it’s resistance value will be higher then the other cells. Unfortunately, to really maintain these batteries you need a good third party charger that lets you set charge rates and gives you the ability to store or discharge. I like the HiTec 2 I purchased last year very much and it helps me keep all my batteries from misbehaving.
The suspect battery may still be relegated to use for ground testing, calibrating, set up of camera, and close hover tests for stick behavior and GPS lock accuracy. I have one I labeled “set up only” that I use to calibrate at new locations and get everything ready. I won’t fly any distance with this one and only hover directly in front of myself at no higher then 8’. This battery is fine for the gathering of current GPS tables as well in new areas or after lengthy periods of non flying (rare though as I try to fly at least one battery everyday) but it’s stored in a metal box now and discharged waiting for next time I need it in the field.
And I’ve had a fire from a Blade 3000 3 cell battery that was charging so I’m very battery paranoid and spend an inordinate amount of time managing them as I own way too many quads and three 480s.
And finally I realized that despite the claims of flight times possible, pushing to those limits will reduce the life of the battery. I now try to never fly into any LV warnings and that really helps. I’m always looking to finish at 10.5 so I’m down and shut off before 10.4 volts. I plan my missions to be solid for ten minutes and then watch where I am and my voltage levels during the next five. I would never be out doing anything risky after that ten minutes as that last third of power can suddenly drain under bad conditions such as too far away, too high up, too much headwind coming home, and numerous other ways weak power can change flight behaviors.