EDIT: For anyone who runs into this issue in the future, Im not sure what the above pictured spacer is... It doesnt seem to be apart of the paioli 38mm, at least on my 06 sherco 290. The "missing" spacer was simply hidden inside the tube for me. https://advrider.com/f/threads/paioli-38mm-fork-service-help.1484571/#post-41646459. This advrider posts goes into more detail, hope it can help someone.