Yeah, IIRc that mod was actually a factory mod, not something added by users. My Japanese TRS-80 Model I has it, or something very similar.
The schematic for it appeared in several TRS-80 magazines, presumably for use by people who’d made so many Homebrew mods to their machines they were afraid to let Radio Shack touch their machines, but yes, it was generally a factory fix or applied by a Radio Shack service center to older machines when:
A: customers complained hard enough or
B: when Level I models were upgraded to Level II
There are several different variants of it, so the exact shape/size of the board might be different on any given machine.
Per @ldkraemer’s comment, it’s basically a crude one-shot circuit that briefly “locks out” signal input after a pulse is detected. This is to work around a software bug in the cassette input routine, and it’s actually kind of a PITA in certain circumstances, but apparently this hack was a cheaper fix than paying for new ROMs.
The final version of Level II basic fixes the routine, rendering it unnecessary. There was an 80 Micro article that said you could identify Model Is with the fix at a glance because they came with a sculpted Alps keyboard instead of the “stair-stepped” Hi-Tek all the older Model Is have, but I have no idea if those two changes actually always came hand-in-hand,