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I guess that I was due. I have run dozens and dozens in my tank and never had a problem. I am still confused as to why the water pumping issue came up. The bearing housing was deformed but not broken. The l/u oil was badly water contaminated. I have never had these issues come up like this. Do you think running with the water intake plate in place in the tank is an issue? I have always left it in place but read in an owners manual to remove it when running in a tank.
Are you sure the upper seal bushing housing is not cracked? Usually, this housing gets cracked when the driveshaft expands pushing up on the bushing housing…Once the housing is cracked, water enters the gearcase which would explain your milky gear lube. Is there signs of oil inside the impeller housing?
On the other hand, the milky gear lube might just be a coincidence, perhaps the gearcase has a different leakage issue not related to a crack in the housing….