The insulator that you mention is already installed on your engine, it is underneath the rat's nest of pipes, hoses and wires. It was never meant to be installed right under the cover.
I had the same problem with ours, the dealer couldn't get it to connect either.
I found that if the BS is parked near other vehicles it may not connect. I drove to a higher elevation, out in the open and it connected no problem.
To put it in perspective, those are all options. When I ordered my BS they all had engine covers, and photos of the engine had engine covers. Mine was missing!:frown:
I have the AVS bug deflector and the Redline Tuning hood supports. To close my hood, I lower it until it is still raised about a foot and push down swiftly on the hood deflector. Hood closes perfectly every time with no dents or problems.
If this were true, I would think there would have been a massive recall for the thousands of Bronco Sports and Escapes that were shipped with engine covers to remove them. Lots of people have engine covers, and I havent heard of overheating problems.