Installing new timing chain on a 318, questioning the oil slinger

I'm in the middle of changing-out a timing chain on a '71 318 for a very good friend, and I just ran into something that seems odd to me. (Note: This is the first 318 I've ever worked-on....)

New TC set is installed, but when I installed the oil slinger I noticed it rides in a shallow groove on the crank snout, and I couldn't help but think, "This is gonna flop all over the place! This can't be right!" (And, yes. It is loose there, and there is considerable play in the slinger.)

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So I pulled the TC set off, put the old crank gear back on, and....same thing!

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Both crank gears also have the same depth measurements, so that groove "is what it is", and the new TC set is NOT the issue here.

I've read that it may be ok to run without the oil slinger, and I've seen claims that some engines never had one in the first place, but......
1. If it's to run without it, why did Mopar put one there in the first place? The people who engineered the engine obviously knew what was best for it.
2. Is it supposed to run in this groove, or is there something "funky" going on with this engine?

If this was my car I'd probably just slap it in and run with it, considering I'm just reinstalling what came out of it...and knowing I could always fix it later if it isn't right.

But this isn't my car, and my good friend deserves to have this done correctly.

So, is it ok to run with the oil slinger "flopping around" (my term) in that groove?

Engine project is on "hold" until I feel more comfortable about this. (But that's ok, as I have to put the gas tank back in this weekend as well.)

Thanks.

Jim