Not sure where you got your telltale from. Do you mean the hole shown in this picture? If so, that is a relic from the days of water heated automatic chokes. Those were 1/4″ hoses in the choke application, so I doubt your 1/8″ telltale is a problem.
Those motors are as happy as any are when on muffs. I don’t think you were supplying enough water to the muffs.
