I have exactly what you describe minus the arthritis, but my pain gradually was lessening over time. It finally hit a point of no further recovery. Actually just met with my surgeon on Monday to discuss surgery. This was my 3rd visit not including the mri. He said surgery was laparoscopic and to expect 3-4 weeks of shoulder pain and essentially little to no use. After that movement as tolerable (different for everyone based on pain tolerance) and 3-4 months for full recovery with no lingering issues.

Your dr will likely recommend shot first with PT. It did absolutely nothing for mine. My Dr was my age, early 40s, and told me he would move forward with surgery at this point. I’ve lived with the pain for 1.5 years thus far and pain is tolerable. I told him that I was leaning to not being cut on until I couldn’t handle the pain. Now that said, I work behind a desk. I do workout regularly, but stopped lifting heavy years ago, partly bc of issues with same shoulder. If I depended on that shoulder for my living, surgery would be a must.

Mine also wakes me at night, but I have just learned to not roll that way.