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That looks to be fitted incorrectly to me. In every kit I've ever fitted the seal went at the bottom not the top, the shroud on the C spanner nut provides the protection for the upper race. Normally the seal would go on the bottom yoke first and then maybe a spacer and then the lower race. If you look at the seal you can see it's lipped around the edge which would seal against the frame tube when it's fitted, doing nothing there on the top yoke.
Sprocket, you wouldn't happen to still have the packaging with the product code for just the bottom seal would you? I couldn't make it out from the pic.