FELT DONUT BEHIND THE STEEL CRANK BALANCER

I found that they were used on the poly 318's and early 273's, but, by '68 they were discontinued as the rubber seal was redesigned/improved so the felt was not needed anymore. Use it if you want, but, it's totally unnecessary. Nothing is going to get into that tight area to hurt the seal.
I've pulled them off 340s and later 360s, so they were used well past 68. My 77 360 had one on it.