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Have a 2004 996 convertible. When putting top down found this piece laying there. I think it has something to do with the flaps on side but not sure. Has this snapped off a larger piece?
If that's it, I believe the function of that flap is to protect the sides of the folded top fabric from being damaged by the mechanism of the clamshell cover. There is also a flap on the rear clamshell latch that is critical, but I'm not sure how important the side flaps are. I'm not sure if it's repairable, or if it would be simpler to just replace the entire flap mechanism per the part number(s) referenced above.