[a1979corvette]

Sounds like you’re all over it! Looks to me like the rubber strut mount bushings were removed or worn completely out. The strut shouldn’t stick out that much, OEM. The cap would contact the rubber strut mount. Essentially sealing the bearing and nut on top of the strut. #8 in the photo is the strut bearing and bushing set. The bearing has to be on your car or you wouldn’t be able to turn the steering wheel. That leaves just the bushing not being installed.

 

[a1979corvette]

Here is an exploded diagram…
#5 upper spring seat/ bearing seat (metal)
#6 Strut bearing
#7 nut
#8 strut mount bushing (rubber)
#9 nut
#10 bushing stop (metal)
#11 strut piton nut