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Never had mine apart but is that a groove for an O-ring ? Or for the clip.
Maybe an O-ring goes on the metal part. Look in the receiving end of the block for tapering where an O-ring would seat.
It's got to have something that seals it since it's a hydro pressure line.
EDIT. Adainc. Where is part #23 ? Is something missing ?
Want to give a heads up on the solution. Ordered a couple new pipes to get the seal I needed. The existing pipe had some marks on it where the seal was so i cleaned that up as much as was possible and put in a new seal and the sleeve. i replaced the entire plastic unit with the seal on the existing pipe. It worked and i no longer have any leak. Big thanks to all who put their thoughts on the board, it saved dropping the engine out again. Thanks