As this picture shows the part that attaches to the steering coupler is the "inner" part, and is pinned to the top of the beige part. The outer sleeve that slides into the steering rack is pinned to the bottom of the beige part.


Here the beige part is at the top of its stroke. It barely moves and when one sleeve twists one way and the other sleeve twists another way, the strain between the two sleeves slides the beige piece down.


Here is the beige piece bottomed out. Much like the IACV this piece barely moves and this piece moving smoothly is critical for the power steering to work correctly. When the grease dries up the piece binds and sends wonky signals to the PSECU(power steering ecu).


Here you can see the field coil, the metal ring on the beige piece is calibrated to the position of this field winding. When the beige piece slides down due to the two sleeves twisting against each other, the PSECU energizes the rack and you get assist.