Yes soak in oil, overnight is good and then give them a gentle squeeze to reshape them. The parts book says Felt Ring x 2, so that would mean both of the slots should house a felt seal, I would think. Technically that seems like a good idea. Can you see two worn rings on the crank to prove that? By scratched I mean witness marks. I hope that the casting will get a good clean, along with all the rest of the similar parts. The angled surface matches a similar one on the crank. As near surgical clean as OCD can manage. Excess oil drains from the bottom of the felt/felts and out through the slot at the bottom and back into the sump. That hole must not be blocked. Note the two "seal fillets" in the sides, which are I think made from wood. They should be in your gasket/seal kit.
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