I'd like to know what is going on at the removal notch at the 1:00 o'clock position. What is that thin flat piece wedged between the axle locknut/spacer and the outer bearing race/retaining ring? Can you take a closeup picture of that area?

It almost looks as if the flag-pole pawl has come out of its sloppy pivot hole and is attempting an escape to freedom through the oversized gap that some "mechanics" use for the "flush and dribble" method of freewheel maintenance.