I suspect, since the hose assembly is part steel and part rubber, the liner was intended to be positioned in the rubber section. Having said that, if the fit is loose enough that the liner can move, then I question its value since the hydroboost fluid would be able to get between the liner and outer rubber hose, exposing the outer hose to full system pressure as well as the fluid itself with the associated potential for chemical degradation. I know one thing for sure after having mine replaced....FCA is PROUD of the replacement hoses!!
Rusty