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Heya J!
Not sure what I'm looking at with the pic, but the brown/orange stuff in the low left of the photo certainly looks like diatomes.
Depending on the age of the tank they;re a normal and expected occurrence.
I'd add more flow. There really shouldn't be anything growing there right next to the cheato. The cheato should be stripping the nutrients from the tank preventing exactly the kind of nuisance stuff growing there. Adding flow will prevent that crud from accumulating and should have zero effect on chaeto.