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I guess somebody thought it was trash, else it wouldn't be loose from the rest of the wheel
It looks like somebody filed where metal was pushed out from the hit, so a seal would go in. It looks like it might have gotten broken trying to get the seal or bearing out.
If it just had that chip missing and wasn't cracked, I might use it. The force on it is further in, in the bearing. If I used it, I'd put a dab of sealer in the chip before I put the seal in.
Sad thing is that somebody planned on using it. It came with a "project bike" I recently picked up. I am too OCD to use it, but wanted someone to back up my assumption that it is trash.
It is not nonsensical at all. If it was agreed that it was junk I would scrap it. Instead, I have learned that it would be totally useable for someone interested in welding and grinding. Thanks for your input regarding the matter.