Just take a look, it looks like there is no recess/groove at all. it seems to be shallow or they overflowed the silicone.
Your pic is a bit small, but I checked the yye listing. I had one, and there is a recess, it is in that pic but the clear sili makes it a bit hard to see.
Mine was deep enough to have One Drop Flow Groove pads fit flush.
That might be a first run. theroybit has one just like that. Mine is a different colorway and it also has the samething. The first run recesses were a bit too shallow, but they do take and hold flowable quite nicely.
You can tell that one may have been over-done but it’s fine.
The groove on the first run Royale was shallow. We have since made a more standard depth for all our yoyos. You aren’t seeing the groove because the pad that is in it is clear. And you can put flowable in the first runs.
Maybe not the groove, but you did overflow the silicone on this one.
Is the one pictured yours? Did you buy it new?
I see now that it is YYE’s pic. Every SW yoyo is finished personally by me. Trust me, the silicone is not overflowing. If it were, it wouldn’t play.
As stated before, the response groove on the original Royale was fairly shallow, but did accept certain pads and flowable. We just got a small batch of new Royales back that have a few changes including a more standard depth groove.
I very much doubt that the picture in question has an overfilled groove. Tasband makes a living working with precision silicone molds and did all of our silicone for us before we moved on to pads. He has tools specifically designed to cut the silicone off at a certain level while pouring.