95 Freightliner N14 fuel filter...

I have a 95 freightliner with an N14 engine in it. I replace the fuel filter twice. This time I went to the dealer and pick one up from there and it came with the water separator drain on the bottom of it. I told him the ones I’ve been installing did not have that. But bigger than that mine screw in upside down. Meaning I flip the filter and then screw it on coming from the top. I was told it should not be screwed on like that. Any ideas as to what’s going on? Common logic is telling me that someone has screwed around with the engine before. That is logical seeing that the truck is 28 years old. So my question is why would they turn that upside down? And can it be undone? Also if anyone is familiar with those engines, how many fuel filters #### this truck have on it? I am only seeing one.

 

It does not have a clear filter on top of it.

 

So I assume that this is some aftermarket stuff. According to the dealership this is not the set up that is supposed to be on this engine. I’m not going to bother it, but my question now is how is the water separated from the fuel?