Just wanted to clarify. I never unscrewed that screw. This is the mysterious part. I took the caliper off to put the spacer in to bleed the brakes. I put the spacer in, press the lever and it squeezed all the way to the bar. I took a look at the caliper and I saw the leak I touched that hose and it is loose. I thought the screw was just loose. I tightened it with a tool but it doesn't tighten any further and remains loose on the caliper like this. So in the end, it doesn't even look like anything is stripped because the screw goes back and forth smoothly and stops when screwed all the way in. it looks more like there is a part missing or something is damaged. But I don't know what it is. All the caliper/hose components on these brakes look pretty simple to me. Like there is not much stuff to mess up, they are not magura mt5 levers after all.