Pancake air filters and mini crankcase breathers were invented by VW parts sellers to bugger engines. Then they can sell you a nice new engine. Why does this set-up wreck engines? Because the VW flat four is designed to run with slight negative case pressure - which is why the crank breather goes straight to the air filter on the vac side on a stock set up. If these aftermarket shiney pieces of **** are fitted then the case will have positive pressure, blowing oily air out of all your seals. Eventually the main crank seal lets go and with it most of the oil. This often happens on hot days during long motorway journeys when people are heading for Devon and Cornwall.
How do I know all this? I've lived by the A30/M5 for 20 odd years and know several local garage guys who show me at least two seized engines a year. Guess what? Most have pancake filters and mini 'breathers'. Throw them away please and fit a stock setup.