Liner insulation through the block off plate?

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superking_

Member
Apr 5, 2017
14
Maryland
Currently my liner is insulated all the way down to the appliance connector. Should I cut this insulation back above the block off plate OR cut the hole in the plate to fit the insulated width? Or does it even matter?
 
Ideally it would go all the way down to appliance connector, but practically, once it's in the fireplace proper the insulation protection is less of an issue.