What Is Wrong With My Betta's Head?!?

My fish, Elizabeth has weird stuck out (not like dropsy stuck out) scales on her head/face. It wasn't like that last night. She did get scratched last month on a decor, that was promptly removed, but healed. Or so I thought?

She also has a bad habit of sleeping next to the heater. Did she burn herself? She seems to be eating, swimming around and interacting with me just fine. It kind of looks like the scales are going to slough off. The rest of her body's scales are absolutely smooth.

PH: 7
Ammonia- .25
Nitrate- 5.0 (I found out that either Elizabeth or her old snail has been hoarding leaves in the back near the heater...I guess they've rotted and I was too lazy to notice it)
Nitrite- 0
Temp- 78 F

I've been using a sponge filter for the last few months, should I ditch that and go with a tradition HOB filter?

I'm just freaking out about her face/head. What should I be doing? (I know I should do 50% water changes for a few days but should I use any meds or just keep water changing and see what happens)

 

I would do 25 to 30% water changes daily and first observe her and see how she's doing without the meds for a couple of days unless anything changes

 

It kind of looks like a white fuzzy fungus infection in the second picture. Is she showing any odd behaviors or flashing at all?