Oil plug removal.

Is that just some kind of foam. Maybe they just wanted to help keep the threads clean. Maybe you can just go ahead and spin out the plug.

 

it is a 12 mil hex and they usually come right out unless when you got the oil done last time they overtight it, but it looks like your standart cascadia plug nothing strange. put a hex and remove it when you get the new filter it comes with new crush washer for the plug and an o ring just look in the box.

 

Is it a piece of gasket material someone stuck in there, trying to seal plug?

 

whatever you do, do not use an impact that is an insert in fiberglass oil pan and if you use an impact you might as well kiss the oil pan goodbye. I've had it about 2 or 3 times that i had to change the oil pan cuz speedco screwed up and tight the plug a lot but most of the time it comes off.

 

see nasriza's post #16. He seems to know what it is

 

Sounds like the insert is loose, which is common. The plug should just spin out, but if the whole insert is loose, it will try to turn with it and can crack the pan if you force it. Check out this video on a tool made to the tighten them without pulling the pan.