The housing do not have a seat for the outer race of the lower ball bearing to set to.
The whole spindle bush assembly is fixed to the housing by the grub screw on the upper bearing.
The spacer is for the outer races, don't know if there is support for the inner races, I guess not.
My guess is that assembly would have been something like:
Press upper bearing onto spindle bush (does it have a seat for the inner race to set to?), spacer, press lower bearing onto spindle bush keeping the spacer free to move (so tension is not put on the bearings), drown the spacer in grease so it does not rattle when the spindle is turning, place/press/tap the bearings into the housing using the outer races if necessary, fit the pulley.
I did not find an o-ring as per the manual, but what would be its purpose? Do not look like a good seal is possible, no need for a rubber guide with 2 steel bearings, what would prevent it from sliding of the spindle bush, noise damping ???

