I've seen a few reproducers with this phenomenon, similar to this. Apparently the soldered joint where the tube meets the cup can fail, but it's anyone's guess whether this particular one was a factory error, or occurred later and was expertly "repaired".
The felt disc was a very early attempt at tone control, apparently before the co. invented the mute ball inserted inside of the horn throat. It's a patented device not owned by Edison, and may have been experimented with by the company, or installed by jobbers or dealers. I refer to it as
"The Robinson Device".
I've studied the Union Manufacturing & Plating Co. a little, and discovered that Harry B. McNulty (original Patentee/owner of U-S Phonograph Co. of Cleveland, Ohio) apparently had procured the right to manufacture and/or market the "Union No.1 Attachment for Edison Disc Machines" (a swivel lateral adapter with "tone control disc" -- my words) at some point in early 1913. The original invention's Patentee was a man named Eugene M. Robinson (U.S. Patent No. 778,271, filed May 12, 1904, granted December 27, 1904).
Almost 10 years earlier (1905) than the UM&P Co. marketed their version, a company named the Tone Regulator Co. at 3oo Wabash Ave., Chicago IL had been formed by a man named Edward H. Uhl, very shortly after Robinson had filed his application to patent his various tone regulator inventions. By October 1906, Robinson's device had been brought to market under the auspices of the Wurlitzer Co. - for use in disc talking machine tone arms.
In an introductory article I found in
Talking Machine World, (September 15, 1905; pg. 5 article titled: A New Tone Regulator), the Robinson device was "...perfected and placed on the market by Edward H. Uhl, manager of the Chicago branch of the Rudolph Wurlitzer Co. Chicago. The device is the invention of Mr. Robinson, the head draftsman of the Chicago & Northwestern Railway."
Uhl was employed by Wurlitzer as early as 1894, as a "traveling man", and had gone on to be a valuable executive for the Wurlitzer Co. (Pianos and Their Makers - Vol. II; Alfred Dolge; Covina Publishing Company - 1913; pg. 215). I'm not sure how this collaboration of different companies was run, but apparently it worked well -- given the success of Wurlitzer. The device was advertised by The Rudolph Wurlitzer Co. in The Talking Machine World by October 15, 1906 (pg. 20), along with the other similar types of devices held in patent by Robison.
Obviously Robinson's "rotatable disc" device was initially applied to tone arms of disc machines, but it was also designed to be used as an insertable sleeve, and sold for "Edison Machines" at 75 cents each.
Here's an ad I scanned from the September 1913 issue of
Talking Machine World, promoting the "new" device. It's the earliest such advertising I've discovered.

- 13-9 pg47 First image Edison B60 or B80 US&PCo.JPG (67.76 KiB) Viewed 1367 times
And another earlier ad from May 1913 illustrating one intended for use as an adapter to play "78" records on an Edison Diamond Disc Phonograph.

- 13-4 pg27 Union Mfg. & Plating Co..JPG (64.09 KiB) Viewed 1365 times
Best,
Fran