that's a '67 only type bump stop that had a removable snubber. it's for the lower control arm bump stop to contact the frame during full suspension compression. notice how the bump stop lines up with the snubber? in '68, the bump stop was moved to the rear of the lower control arm and the snubber was welded to the frame. in '69, the bump stop was still on the lower control arm, but moved to the front, along with the snubber on the frame.
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