Can't remember where it was from the factory. On my previous oil change I had it all the way to the top of the assembly, just under the cap, so that it squeezes between the cap and the steel housing and was still be visible when installed. This time I put it there and it leaked about a quart of oil (what a mess). So I just changed it so that it is in the space at the top of the threads on the assembly, so when installed it cannot be seen. It is down inside the housing... so far so good.

Could someone check theirs (assuming you haven't changed your oil yet) to see how it comes from the factory?