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It's supposed to be a brake quick release, you just have it adjusted wrong.
https://www.sjscycles.co.uk/brakes/dia-compe-1254-front-brake-cable-hanger-1-inch-with-quick-release/
gbj_tester
Oh, and any idea what this little lever is for? It locks out the front brake, like a little handbrake. It's rather nice, but I've no idea what practical use it's supposed to have.