What buccaneer said, the water gets blown out the exhaust relief slots in the back. I don’t know what other hole you are talking about.
There is a short water tube, but you can’t see it without removing the lower unit from the upper part of the leg–usually difficult to do. Noting to be concerned about anyway. The water cover on the cylinder is just that, a cover. It is not a cylinder head.
The water pump rotor is almost always swollen and ruined by grease leaking out of the gearcase. Club member Brian Wilcox makes new ones.
I have 9 or 10 of those motors at last count.
