I'm happy for you that the engine is just a little stuck. Good luck with the revision. The flat protrusion on the right side is supposed to be a drill. In EKT's catalog, the small machine is called a "grinding and drilling block". That makes it clear. Why there was not also a real small drill used, I do not know. Cost reasons will not have been the reason.
By the way, I own exactly the same model. Belonged to the parts that the friend brought me in 1990 from the former GDR.