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Chris,
The hose that is circled comes out of the intake (from nipple cast into the intake). Yes, there is a plug on the end that has female threads. Don't know if it's factory or not. I didn't get to take the engine apart and have limited experience with these.
I assumed it is some large vacuum port. I wouldn't expect it to be some sort of air or gas recirculation as I would expect those to go upstream of the mass air flow meter. Was originally thinking it was for a brake booster, until I found I didn't have one of those.
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