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You are correct.
It is to minimize pulses from the oil pressure sensor to the oil pressure gauge in the instrument cluster.
Many times, it is broken or left disconnected - usually due to a clutch job and / or disconnecting the transmission from the engine.
I've never seen the stock oil pressure gauge "freak out" due to it not working.
Side note, there's another, identical cap located under the trailing coil pack.
That one is to minimize interference from the trailing coil pack switching between the front and the rear rotor for the ignition select.
-Ted
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