It looks like the snap-ring, #11, has come out of its groove, circled above #15. This happened to my '74 car. When this happens, the spring pulls the steering shaft up into the outer column sleeve. Then, the outer column rubs on the U-joint. It looks like someone put the additional bushing in the bottom of the column to stop the rubbing, but this is the wrong approach to correct the issue.
The column needs to be removed from the car and that bushing needs to be removed. You may need to pull the steering shaft from the outer column by disassembling the top end. Then the snap ring can be accessed if it is still there. If the ring is there, it probably needs to be bent to tighten the fit in the groove and then pressed back into position.
