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Been a while since I had my 71' with that feature, but I believe it is part of the seat latch. The piece should be straight and latches to the seat back release button up top. As best as I remember.
As Duke94 stated, this is part of the locking mechanism for 1970 to 1978 Corvettes. The strap rides inside a metal “slide” and locks/releases when the release button at the top of the seat back is depressed. Yours is definitely bent/damaged and I doubt functions correctly. There are reproductions available as well as used units from various parts houses.
You can get that part and then replace it yourself. It is pretty intuitive. Just be careful as you try to access the nuts toward the top of the seat back that you don’t tear the vinyl. That will make the repair far more expensive.
Your banana shaped mechanism should be flat and slide inside a metal sleeve. Looks like the sleeve may be compromised with rust and prevented the slide back into place when the seat was tilted rearwards.
Id not try and flatten it to "make it work". It'll weaken the part. Take it apart and fix it right. Replace as nessecary, after all, there isn't much to these old Vettes safety wise to start with, let alone "making" things work.
I might still have both of those parts in my bin, if you need them. From a '78, let me know.
I am a repair/restore/clean up what you have before buying new stuff guy usually (for one, due to many “repop” pieces, even from top vendors being ill fitted, non performing wads of chit that I coulda bought for half on Amazon), but I think I would buy new on this one. Best I can tell, these are kinda a “spring loaded” steel. Trying to get such a thing back into some sort of a usable shape may prove to be fruitless. Mine are a lil crusty like yours, so will just clean, polish & lube when I get to that point, but have looked them up. Not big $ to replace. Good luck and best wishes getting them sorted to your satisfaction!
Since they’re a piece that isn’t regularly replaced there a good chance someone with a parts car can sell you one for fairly cheap. I have a set of seats apart right now, there’s not that much to it. A little bit of lubricant to help it move and protect against rust would help prevent that from happening again.
I used Fluid Film on mine this summer when I recovered the seats. I shot some into the channel from both ends and then put a coat on both sides of the entire slide, not only for lubrication but as a rust inhibitor.