That's the hammer spring, it goes inside the hammer spring housing, which can be accessed by removing the pin in the bottom of the grip and sliding the back of the grip down, then you remove the small pin in the side of that and switch the springs.
However, this will not affect the gun being able to strip one off the mag upon cycling, the recoil spring is too stiff or too long (or both) and therefore the slide isn't travelling far back enough to strip a round off the mag, maybe cutting a coil or two will help.
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