“Lipid rest/ hemangioma” is a common finding in vertebral bodies. I see it about every 2-3 MRIs. When MRI was first developed and we saw these findings, we use to think that everyone had “tumors” and many or these were biopsied. As time went on, we understood that these were normal variants and learned not to pay attention to them.
Your arm pain could be caused by the C5-6 level. You might be a good candidate for a SNRB at this level to diagnose and possibly treat the pain you experience (see website for selective nerve root block and pain diary).