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OK, here are a couple of my thoughts. First off, I can’t remember whether those things split and fell off, or stretched or heat-expanded, or what. I suppose 60 or 70 years is excuse enough to forget. But I do remember removing gearcases for water pump service and finding the ring dropped down on top of the pump housing. And/or discovering it too late, after powerhead destruction happened.
I agree, Locktite seems to be a logical solution now. But was it even invented yet in 1956? I do think they were pressed on or shrinked on back in The Day. I certainly think I’d try the Locktite solution if I had one to fix now.
How common? Well common enough that I replaced two or three powerheads under warranty—and we weren’t even Evinrude dealers yet.
Pretty sure you could see it if the powerhead is off.