Is this a yolk sack or intestines or both?

[Cold-Blood]

I wonder if chicks with yolk sacs not absorbed ever live?

I have two that had that problem, one hatched before it was totally ready, the other the hen ate the shell fragments and continued eating the shell. Both survived, but they definitely did not have that much yolk left to absorb.

 

[BirdsBeesTrees]

I don't think it will be able to absorb it.
You might consider tying it off, with a string like an umbilical cord. Spray it with Vetricyn or Neosporin.