Clarifying;
Walnut is a susceptible host that can be infected by the verticillium fungus, manifesting discoloration. However it is resistant to the detrimental health issues of the disease.
Not sure, just a common walnut we have in central Kansas. Definitely not a Black walnut though.
Having looked at some of the images for verticillium, I'm inclined to think that way. Interestingly, a few days have gone by and most of that discoloration has gone away.
An other possibility is discoloration due to bacterial wetwood. A fetid odor when cutting the trunk would have been the big clue. Wetwood liquid under pressure will sometime spread to the outer sapwood and is higher in mineral content. Over the years I have seen an array of odd colorations from wetwood.