1) It is not in the steering column. It is pushing on the pinion behind the rack of the steering gear, being an integral part of it, and the steering gear assembly is mounted on the front axle body.
2) That piece is not broken, it is just a bit smaller than the recess it was put in. No need to replace anything. It is a bit smaller in diameter than the recess because it is made of softer metal that tends to slightly mushroom on the edges.