Btw Thea, if your Aeonium gets too moist at soil level it will appear like this, if that happens, I would check the soil and add additional pumice, perlite or chiken grit to improve drainage and allow it to dry and callus before re-planting.
So on the photo, this Aeonium cutting got rather moist at soil level last Spring, thankfully it was getting warmer then, and the plant just callused itself, and went to its summer dormancy. The stem has to stay firm like shown on the photo, above that sunken part. During Fall, when the cutting is ready, either you see the rosettes starting to grow again and widen up or you see those roots coming out above the dried out sunken part. In other areas with more pleasant temps, they may have better growing conditions than ours so they can see more growth ahead, compared to our area which is just so hot and dry during late Spring to early Fall.
I have just added more pumice and chicken grit so it really looks gritty media on the photo. So it is important to keep the cutting dry as it attempts to make roots, but it can take the cool temps. I was glad it has already formed the roots when it started raining, at least the plant will be able to drink it up.
It is one of my curvy cuttings, since it was a rather overly etiolated one when I cut it off two years ago. I can actually still cut this down, but I rather like the curvy pose it made
New rosetted can form anywhere up and down the stem, but usually below the cut off portion of your cutting.
This is a different cutting, just a close-up of the new little cutie pie rosettes waking up: the whole plant is shown on my Nov 9 posting.