pilot bushing

I am currently doing a motor swap on my 2000 TJ Sport (manual), replacing my blown 4.0 with a used 86k mile 2005 4.0 from an automatic. In order to install the pilot bearing, I need to remove the bushing/sleeve that is currently attached to the crank, which is intended to mount up with a torque...

Okay, im about to install my pilot bearing. Buuuuut I'm confused. I've spent hours researching and can't get an answer. I pulled my pilot bearing. I'll attach a picture of where it came out of. There's a small pocket where the pilot bearing came out of. Then there's a larger cavity. The kit I...