It is a known problem which is not actually a problem.
You have to look carefully and in good light to the red cap.
There is a groove for the O-ring gasket.
The gasket will sit there perfectly and nothing else is needed for a tight closure.
I read other people in the internet with your same problem, apparently the problem arises from installing the gasket "too internal", on the inner side of the groove, instead of on the outer side.
Or, you have to "distribute" along the entire circumference the part of gasket which appears to be in excess. This "bubble" appears because the gasket is not fully into the groove.
In the page below you will find several videos explaining the positioning of the gasket. I did not have any problem following these instructions.
https://thevintageshop.ca/products/fermonster.html
As a side note, I suggest you replace the horrible conical plastic gasket of the tap (if you have a tap) with a red silicon "flat iron" gasket. You should find it at shops selling spare parts for home appliances, if you go there with the tap you will find the right diameter easily. If you tight too much, the conical plastic gasket which comes with the fermenter will develop a crack and a leakage will ensue.