Hello; The condensation indicates a small bit of dampness inside the tube. My take being that this is not supposed happen in a sealed submersible type heater. It is also a fairly strong heater at 300 watts.
I guess the only absolute safe answer and my best advice is it to toss the heater as using it with dampness inside might lead to a shock hazard or some sort of failure.
That said, I have been known to try to fix heaters with problems. First note being that my main experience is with the older type heater that hung on the side of a tank and not to be submerged. Those had fairly simple internal electrical components and were open to the air at the top enough that any slight moisture that got inside would be drive off by the heat. I have not had one of the submersible heaters apart yet so do not know what might be inside.
Next note is any fix that comes to mind requires the heater to be taken apart. This likely voids any warranty and violates any safety liability for the manufacturer. If you take it apart and later have a problem while using it, it is on you. I live alone and am the only one who fools with my tanks so any heaters I have repaired expose only myself to a hazard.
next note is that it will depend on how easy it comes apart and if the seal can be made watertight again. At the very least I would only consider using it with the top of the heater sticking out of the water and not totally submerged.
last note being that I have had a couple of the old type heaters get some moisture inside and have been stupid enough to keep using them. It depends on how the water got inside. If the glass tube was cracked the heater got tossed. Sometimes it was spray from a bubbler at the surface of the water getting on the top of the heater and a wee bit of dampness getting inside. Sometimes I simply moved the heater away from the bubbler after opening it up and letting the heater dry out.
Again the safe thing being to toss the heater. If you use it then three issues might happen. It might fail on and cook a tank. It might fail off and let a tank get too cool. It might be a shock hazard to both people and fish. Your call and good luck.