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The DeWalt N538721 is a genuine Original Equipment Manufacturer (OEM) cushion bellows replacement part .This bellows sits on the stop and is there to help soften the blow when the dill is in chisel mode, you would need to replace this when damaged.
This specific part is engineered precisely for the DeWalt rotary hammer drills:
DeWalt DCH263 (18V / 20V MAX XR Brushless 28mm SDS-Plus Rotary Hammer Drill)
DeWalt DCH263B / DCH263R2 (Specific bare-tool and regional kit variants)