Jazz, that looks like a standard wire wound resistor.
I'd guess it's the residual charge drain capacitor, or possibly the over-voltage dump resistor. I'm also wondering if the relay next to it, is part of the same circuit.

The blue discs near the main terminals are more like thermistors, but capacitors also come in that kind of package.


If it was the residual charge drain, I wouldn't expect it to stop the spindle if it had gone pop, which is why I'm wondering if that relay next to it is related, because if the relay had failed, it may cause the resistor to have been connected for longer than it should be.
If it was for over-voltage, a wiring fault to the spindle might have caused a voltage spike, and caused it to fail.

Although, I'm wondering how the VFD is being controlled. The high-voltage wiring leaves a lot to be desired, so is the VFD being controlled via the control panel/low voltage terminals, or is it continually being power cycled via the mains input?