When I took ownership of my project, the VW1600 (peacock conversion) had 303 hosing connected to the side of the oil filler plate (see photo below):

Speaking with the former owner, this hosing was open at the other end and I assume was used as some form of breather for the case.
I am confused by the need (if at all) to vent the case in this way - is this actually required?
Does the case require venting? If it does, do most conversions use the loose hose arrangement, or fit an appropriate oil filler breather?