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“I don’t understand how I may position the seal further up on the shaft. Do you mean that the seal can be half way pressed inside the groove in the bearing?”
With the prop shaft seal or drive shaft seal on 10, 15, 18, 20, 25 HP Johnson and Evinrudes there is some “leeway” or wiggle room where you can position the seal in a slightly different spot in the cavity/recess to avoid the wear on a shaft. I could be wrong but I think with that seal in the bearing you’re pretty much stuck with it in that position.
Yeah, there may be no room inside that bearing housing to reposition the seal much..
For now, get the puller, remove the seal, and have a look at the crank where the seal rides. In this case, perhaps you might get lucky, maybe the seal lip is just messed up… That tool makes this job easy…