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Its the outer cam bearing that goes towards the timing chain.

I see that it is not driven all the way in and that it is blocking the groove that I suspect serves a purpose to oil the timing chain sproket.

Is it OK or should it be pressed farther in until the groove is not blocked?

see pic

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Isnt that the oil hole I see in the block... if so
the bearing should be on top of it with the hole in
the bearing lined up on it.... otherwise your dumping
ALOT of oil doing nothing(not counting the loss
of pressure and not oiling that cam journal)
EDIT
I see now thats BB so if the oil hole in the bearing
lines up with the block hole, should be it

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I just took a file and opened up the bearing a little where the groove is at so that the passage isnt blocked.

I didnt want to touch the bearing and drive it farther in....I dont want to missalign it.

Thanks!!!

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You should be fine... there's a fair amount of oil
that spills out the front of the bearing to lube the
chain and gears