Felt doughnut on balancer

I’m sure some have seem this in a felpro timing gasket kit. I’ve never seen one and assume it goes here. Correct me if I’m wrong. Don’t have a service manual that shows this. Didn’t find anything in the search and google only gave me 1 site in which they said this was to keep the front seal moist. It’s on so if it’s not right then......oh well.

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New one on me.