Believe that is where the coil for the old two piece electronic ignition mounted.
https://www.arboristsite.com/community/threads/mcculloch-chain-saws.71126/page-1255#post-6088191 see post 25,085
Ron
https://www.arboristsite.com/community/threads/mcculloch-chain-saws.71126/page-1255#post-6088191 see post 25,085
Ron