I have the lower unit pulled to replace the impeller. I found a YouTube video on doing the impeller and it suggested to forget the o-ring near the top of the shaft going to the upper unit. Apparently the shaft goes into a seal you end up not being able to set it properly into the seal if you use the o-ring ring.
In the Gen 2, there is no slot for an o-ring.
In the Gen 2, there is no slot for an o-ring.