It's for the escape wheel, and unfortunately fully tightened down the pivot is contacting the jewel. I don't have a staking set, so I can't move the jewel settings, and I've gotten oil into the pivot hole.
Probably an incredibly dumb question, but can I run this watch without the cap jewel I'm pointing at?
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It probably needs the cap jewel, even if the endshake is off. Did you try running it with it without the cap jewel in both dial up and dial down positions? It won’t hurt to try that and I expect you to find is that it will not run well at all in dial down because the pivot drops down without the cap and out of the jewel that’s up.
I have and it seems to run fine in all positions. I'm not sure why it's like this, but I'm thinking the donor movement I pulled the escape wheel from had longer pivots or something. The movement Im servicing ran before, but I broke one of the escape wheel pivots and had to get one from a donor. Same movement, just a 7 jewel model instead of 17.
But the 7 jewel doesn’t have the cap jewel?
No, only balance, pulse, and pallet jewels.
This is probably why then. I’m guessing that the escape wheel is not interchangeable (longer pivots). If the end shake is ok and the the new escape wheel lines up with the pallet and the teeth mesh, then it should be fine I think.