Hi David OLSEN,
When you use the external reference clock as the clock source, not the external crystal, then you won't use the OSC module, XTAL0 is none used pin, it is better to connect to the ground, just the recommend design.
The clocking diagram can help you to understand it.

Wish it helps you!
If you still have question, please contact me!
Have a great day,
Jingjing
-----------------------------------------------------------------------------------------------------------------------
Note: If this post answers your question, please click the Correct Answer button. Thank you!
-----------------------------------------------------------------------------------------------------------------------