Is it me?
That looks like the bearing to me, maybe someone jammed the trans pilot shaft in?
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I can't help you with the PTO ?, installing the pilot bushing is the easy part getting the old one out is the hard part. Watch some YouTube videos on it. I like the grease method.
The bushing isn't in the flywheel it's in the end of the crankshaft.
Yep that's the pilot bushing in the crank shaft. And yes that's the PTO port. Jeep T18?
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I struggled with many pilot bearing removals. Some I even had to give up on and use a dremel tool to cut them out. Then, while helping a friend change his clutch this past April, he showed me a way of removing them with ease. He merely threaded a 3/4"x10 tap into the bearing, tightened the tap, and out came the bushing! I imagine a 3/4" bolt would work as well. I felt like such an idiot! But, old dogs can learn new tricks!
I've since seen Youtube videos using bread to do the same thing. Cleanup looks much easier though.
There's also the wet toilet paper method. I like that one since it's a crappy job to deal with anyway....

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