Chosen Solution

I just removed my sort of swollen battery from my iPhone 6. I did puncture the battery very lightly which caused a little flame like thing to come flying out while the battery was in the phone. The flame like thing came out of the phone so it wasn’t inside the phone. The battery came out then, but some left over black stuff (maybe the battery casing?) came out in the phone. I wiped it off (see pics) but some residue remains in the phone I cant get out. The inside does smell a bit not too much. My question is: Can/should I still proceed with the battery replacement?

I can’t tell what the top picture is. Use a Q-tip dipped in alcohol to clean up the residue. Install your new battery. I’d put the old battery in a tin can and fill it with sand or dirt.