MK3 Intermediate Shaft not against circlip

p400

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Inspecting my MK3 cases apart for service/refresh and I find the intermediate shaft is not seated against the internal circlip.
About an 1/8" to the outside.
Is this an issue that needs fixing?

InterShaftSpace.jpg20230924_135137.jpgInterShaft1.jpg
 
If the shaft is still firmly gripped by the interferance fit to the case, heat the case and push fully home, slot vertical with engine upright (so the slot aligns with the oil hole in the timing cover
 
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