The breathing is very rapid, about 175 per minute. That is a symptom of velvet.
Appears to be some white spots on the body, although they could be on the glass. On the body would be signs of ich.
The ragged fins are serious and could be from the damsel for sure. The damsel could have also inflicted damage to the body and all of the stress could contribute to the high breathing rate. If I understand your first post, the fins and body were normal the previous night?
Do you notice any mucus or slime on the tang?
First thing I would do is isolate the damsel from the tang. Even if the damsel did not create the issues, the weakened state of the tang will tempt the damsel to do more damage.
If the white spots are on the fish and not the glass, or if slime/mucus are present you will need to begin copper treatment for possible ich/velvet. Problem is that you cannot perform that treatment in the display tank with live rock, aragonite, calcareous rock or invertebrates. Also, you will need to treat all of the fish because of the likelihood they will all be carriers of the parasites. Your tank will need to remain fishless (fallow) for 6 to 8 weeks to insure the life cycle of the parasites is broken.
The link below explains how to set up a QT.
Note, if the parasite is velvet, you will need to move quickly. Velvet is a quick killer.