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Great drawing! better than I could for sure 🙂 I would say from the drawing that the indentation is the lowest and highest marks for the oil level. The plastic pip is possibly to avoid oil running back along the stick when checking it??

Thanks. The flywheel and clutch failed the day after I posted above. Have had that done and got the cambelt and water pump done at the same time. Since I've got it back it's now struggling to start when hot. Changed the fuel filter and someone out it on diagnostic for me and one of the injectors is running at a negative. He's coming back to put it on again when the car is cold later and see what the difference is in the readings but looks like I could have a faulty injector too. The fuel filter was pretty bad, not sure whether to try running a injector/ fuel cleaning fluid through the system and see if that helps before going down the route of replacing injectors? I've only had the car a couple of weeks now and already spent more on fixing it than what I paid for it 😞

Thanks. I did try this option only to be told it's a main dealer job. Was quoted £262 + vat to purchase plus £70 + vat to install. I found a company called North East VAG Adaptions who were able to help. They provided the activation codes for both the App-Connect and voice control via email which I transferred to a SD card. Did a system update which took about five minute and hey presto, all working. Cost was £100 all in. I did ask what would happen if it all went belly up and they offer full support.

I agree. I have purchased some RTV silicone and will give that a go. I called a transmission specialist who suggested the same as you. He did say it shouldn't be a problem as it's not under pressure and there is no oil seal behind it. He did say he doesn't even know why it is there! If the sealant doesn't work I will try Aryldite.