Yes you are correct, the collar is in the casting for the twin groove. Almost every one I have seen has a fine hairline crack at the keyway thin wall section. If yours doesn't, then take care with install that the key is sized to the groove before installing. They also appear to wear a bit easier at the seal face, causing a groove. I was going to try fitting an engineering speedie sleve or similar to solve the problem, they are very thin and though polished metal.
I love the shape of the 73 cars, and long live Djet