I have seen that a number of times. This is from my 1959 Sportwin I recently finished up.
That’s what happens when the pump housing is just forced over the impeller and the impeller isn’t rotated in the proper direction as the housing is placed over it.
The water tube grommet was also mashed into oblivion.
Someone didn’t quite have the finer points of outboard maintenance down when they worked on this one.
-Ben
OldJohnnyRude on YouTube