That Cut-out....
is for a magazine safety... When your grip was on its original Luger - that panel was cut out for a "safety" which prevented the trigger from being pulled when a mag was not inserted.
These were found on "Police" Lugers - by official rule. As well, Police issued Lugers had a sear safety, which your's doesn't have...
Anyway - that's what that cut-out is for...!!
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