Sorry - I screwed up. The engine I referenced was the wrong engine. The correction is the engine is an 8hp, 155316M:
The first picture is the is of a block looking into where the manifold attaches. So it is a cast block looking into where the mainfold attaches to the block.
I looked at the intake area where the gouge is and noticed that the inset part has tool marks where most of the inset area is but also to the right of the tool marks is an inset area which is part of the casting. It seems like the original cast had an inset area build into the block but did not go far enough. The designers probably realized that and called for the block to be machined to get the full proper inset. I've got a second engine, 10hp 159468X which has the same thing - part of inset area on the right is a case inset and the part on the left is machined out. The 10hp is from the early 2000's and the 8hp from the late 90's. I think the blocks are the same and probably made from the same master with the same design flaw. Well, I'm guessing it was a flaw.
Now that I realized I had the number of the wrong engine I got the right drawing for the 8hp (155316M). It calls out two parts for the intake valve cap.
149A 27882 Cap, Upper valve spring, and 149A 35862 Seal Assy., Intake valve. What came out of the machine is in the picture.
So it's a seal and a new one on me. I'm rebuilding the engine. Do you think this part needs to be replaced? Obviously, I don't have any spec on wear limits.
trouts2