I just completed this fix and knob is functioning like normal again. Thanks for finding this DuSH!
No need to remove the PCB board, just push down on the ring on one side with something flat and the other side will pop up to grab. When reinstalling cover, make sure to align the three plastic posts with the holes in the bottom PCB.
I have to wonder what the real function of this plastic ring is and what inadvertent effects could happen with it removed. Filling a gap to keep out dust sounds the most logical. Otherwise, I would think it was supposed to provide a bit more friction resistance to make the knob feel tighter when turning.
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