Your MRI report focuses on the C1-2 level but the radiologist doesn’t discuss the levels below (C3-T1) which a cervical MRI typically covers. You could have a disc herniation below which is what I would suspect based upon your report of symptoms. You could have torn your rotator cuff too but some symptoms don’t fit as well. There is an outside chance that this is thoracic outlet syndrome.
Donald Corenman, MD, DC is a highly-regarded spine surgeon, considered an expert in the area of neck and back pain. Trained as both a Medical Doctor and Doctor of Chiropractic, Dr. Corenman earned academic appointments as Clinical Assistant Professor and Assistant Professor of Orthopaedic Surgery at the University of Colorado Health Sciences Center, and his research on spine surgery and rehabilitation has resulted in the publication of multiple peer-reviewed articles and two books.