Lt. Gov. Sara Rodriguez, widely seen as the establishment front-runner in the Democratic primary for governor in Wisconsin, dropped out of the race on Friday, citing issues in her campaign’s financial reports.

Her decision was the latest rupture in a crowded contest to replace Gov. Tony Evers, a Democrat who is not running for re-election. Some Democrats in closely divided Wisconsin are watching the primary campaign with growing trepidation, worried that the winner in August could be Francesca Hong, a state legislator and democratic socialist.

If Ms. Hong, a chef and a resident of the liberal capital city of Madison, wins the Democratic nomination, some Democrats fear the party could give the votes of moderates — and the upper hand — to Representative Tom Tiffany, the likely Republican nominee, in the general election in November.

Other remaining Democratic candidates include Mandela Barnes, a former lieutenant governor; Kelda Roys, a state senator; and Joel Brennan, a former state official.

This week, Ms. Rodriguez disclosed that she had fired her campaign manager after discovering a shortfall of more than $1 million.

“As we have continued to dig into our financial reports, it has become clear that there are issues that would be an ongoing distraction — not just for this campaign, but for the primary and for Wisconsin,” Ms. Rodriguez said in a statement on Friday. “This race is too important to let that happen.” She added that she was “deeply hurt and betrayed” by the turn of events.

Her sudden departure left Democrats in Wisconsin scrambling to understand the new contours of the race, less than four weeks from the primary on Aug. 11.

Ms. Rodriguez’s departure could provide an opening for Mr. Barnes, who is well known to Democratic voters.

Alternatively, it could be an opportunity for Ms. Hong to expand her left-wing base, as she has highlighted her background in restaurants and promised to address affordability and the cost of health care in Wisconsin.

But whether a democratic socialist can beat a Republican in a narrowly divided state like Wisconsin — where elections are often decided by a percentage point or two — is an open question.

Republicans appear eager to compete with Ms. Hong in the general election. A super PAC tied to Republicans is running a new 30-second ad about Ms. Hong, which criticizes her for being too liberal — an apparent attempt to make her more appealing to Democratic primary voters.

Mr. Barnes’s electability has also raised concerns from Democrats who have pointed to his loss in a statewide election in 2022. In that race for the U.S. Senate, Mr. Barnes lost to Ron Johnson, a Republican.

In a statement, Mr. Barnes urged Ms. Rodriguez’s supporters to vote for him. “For all those who believed in Sara’s resolve to make life better, there’s a place for you in my campaign,” he said. “It’s time for all of us to come together to beat Tom Tiffany.”

Local Democratic officials said that the race was still far from settled.

Paul Hambleton, chair of the St. Croix County Democrats, was at the county fair on Friday, talking to Democrats at the party’s booth. He said that he had chatted with voters who were sympathetic to Ms. Hong’s worldview as a democratic socialist but added that her views would be a harder sell in other parts of the state.

After hearing that Ms. Rodriguez was out of the race, he started delivering a simple message for flummoxed Democrats: Don’t vote yet.

“We’ve got a few weeks and it’s wide open right now,” Mr. Hambleton said. “I wish it was less chaotic and I wish there was a cohesive message at this point. But this is up to the voters.”