That "spacer" as you call it has nothing to do with anything except keeping the belt on the sprocket. You may have sheared off the little "nub" on the front of the sprocket that keys it to the recess in the rear of the pulley hub. [See the 2 pics below.]
The t-belt drive will be OK, but if the belt pulley is "creeping" the timing notch can't be trusted.
That usually happens from not tightening the pulley bolt to spec:
stage 1 - 44 ft lbs
stage 2 - another 60° rotation ("angle tighten")
[This is really tight. I need a pipe on my breaker bar to get that 60°]
[I use the rope trick to lock the crankshaft for bolt loosening and tightening.]
B230 Crank Sprocket

Crank Pulley (B230)

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Bruce Young, '93 940-NA (current), 240s (one V8), 140s, 122s, since '63.
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