The arrow points to the seal on the right side of a yamahopper. Now if you look just to the right of the arrow, you can see inside the engine. Why? Because the seal is not big enough to fill the entire gap from the crank shaft to the inside of its housing.
I have a strong suspicion a dealer did this. So what did they do? They machined a spacer to fit over the crankshaft and inside the seal. Why? Because they were using the wrong seal.
Wouldn't it be easier to get the right seal instead of making a spacer so that the wrong seal can kind of still not work? Or maybe they got lucky and had a spacer that fit perfectly over the crankshaft and inside the seal. And btw, the spacer trick didn't work as the engine was burning transmission oil.
Just when you thought you'd seen it all. (edited)