Re: gadget on top of bell housing, Lubricator?
There should be NO play in the shaft so yes, the bearing should be replaced. According to the schematics, yours should have only 1 bearing and it looks like you can remove the shaft from the rear if you modify a pair of long nosed pliers for removing the snap ring.
If that bearing fails, the loose shaft will most likely damage the flywheel cover beyond repair, and will also most likely damage the flywheel damper (coupler) and other components. It's a critical componet so it's best to bite the bullet and repair it the right way. There are some of us that have seen the results of that bearing failing and it gets expensive real quick. Your question as to what that thing on top of the bellhousing (flywheel cover is the corect term in this case) helps explain why those bearings fail - it's not obvious and people just aren't sure what it is and what it's for. Instructions are attached.
View attachment Flywheel cover bearings.pdf
You can search the forum for things such as "upper gearbox". PDS bearing", "Primary Drive Shaft", flywheel cover bearings", etc. and you'll see that it's been discussed a few times.