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Something definitely looks wrong in that photo. Looks more like a spacer to keep the spring up toward the top and the belt should be in another position away from it. Looks like there should be 3 pulleys at the rear and I only see two. I don't know for sure but my guess would be the belt should go between #7 (v-side of belt) and #6 (against back of belt) in the diagram as it is pulled tight by the clutch (those two pulleys) which should pull it away from the area of the spring.