yeah does look like a bit of cloth or hair on the hub
would scrub the wheels with wire wool in hot soapy water..brillo pads if you get them there.
looks like chrome steel rims on large flange alloy hubs.
as said on other threads. soak the nipples at the rim end of the spokes in oil overnight.
then get a spoke key. there about £5 here. carefully tighten the spokes to pull the wheel into line.
think the hub has been messed with. as theres washers on the axle. instead of a thin lock nut