crankshaft position sensor replacement

After some searching on some trouble codes I would get sometimes ( cyl 2 misfire), I read about the crank pos sensor and how the lack of shim on installation might cause timing signal issues etc etc.

was doing some other engine work and so i got a shim and a new sensor to replace at the same time. Pulled the old sensor, and while the sensor itself looked clean, no score marks or anything, there was a more troubling find...

The single small fastener (8mm hex head) was torqued down, but would just spin and not thread outward... using a flat blade screwdriver I was able to pry the sensor and the bracket away from the van... and I found this brass insert on the engine side of the fastener.

wtf? theres no way this can be proper...