GE part installation

I’m attempting to install the drum felt seal, part #312 in the diagram seen at URL="http://www.appliancepartspros.com/partsearch/model.aspx?model_id=5240324&diagram_id=29425659#d29425659.

The part’s function, I assume, is to seal lint from escaping from the drum lip. But it’s not clear where this felt is installed. Placing it in the circular groove that holds the drum results in additional friction, and extra work for the motor. But that seems to be the only logical installation point.

Any suggestions?