I pulled the toothed washer to get a better measurement, and now I have a theory as to how the threads got broken. This thing just did not want to come out. It's got the French "flat" key, but it doesn't seem to fit the steerer properly. In fact, I'm not entirely convinced that the flat portion of the steerer wasn't created by forcing this thing on. Also, the teeth on this piece are worn flat, probably from someone turning the bottom piece while this was stuck in place. I had to work it up the steerer bit-by-bit first using a steel pick and then a small screwdriver. I can easily imagine breaking the threads by using too much force as this got near the top. It doesn't slide back on, and the standard MAFAC hanger with the same flat key also doesn't fit.
The more I look at this headset, the less I like it. It just doesn't look right with the flange on the lug. Would the P3 be flush with the flange?