Found some rust on the body, how bad is it? and bonus credit

[insyncro]

When rear brakes are brand new and adjusted properly, they will drag a small amount until the pads scrub in.

The Bus Lab is a very good shop.
I'm sure they would reply similarly.

[jtaby]

I would add that I spent a lot of time in stop-and-go traffic and the temperature gauge was on the upper end of the LED light
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1991 Vanagon GL Camper

[jtaby]

I just found this body rust on the van and I'm trying to determine how bad/fixable/urgent it is. Any thoughts?

Bonus credit question: I just got the van back from The Buslab and they installed new rear brake shoes and drums and after I drove home for 30 minutes I started smelling a burning smell coming off of the rear wheels, especially the driver's side. I'm wondering whether that's normal, I don't think it is, because the car has been sitting for an hour and I can still smell it though it's fainter.
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1991 Vanagon GL Camper