I dont want to speak for all Tonys but they mean the washer inside the piston. Like a tap washer. The piston isnt being pushed/seated against the water outlet well enough.The plastic washer? It seems tight?
The local plumbers merchant only had this in stock but it looks as if the level isn't adjustable on these?
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I would personally just replace the whole fill valve rather than just the washer inside it.
Why not just swap it out for a new toilet and cistern
To set the level you adjust the height of the float fitting at the end of the arm
TBH, if you're going to replace the ballcock, you're better off going for something like a modern float valve. Faster, quieter, more easily adjusted. Costs a few pounds more, but just works better.