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That hole…and the one below it with a bolt stuck on it should likely have a Welch plug (Round aluminum dome shaped plug that is stuck in the hole and peened to seal.) to seal the water passages. If these are not sealed properly or there is a leak of any kind the system will not function since it cannot vacuum/siphon water.
My Welch plug fell out of yge same area just as I cane in to dock once. Caught it when I winterized the motor.
Used a replacement from an OMC carb kut me thinks!
I’ll double check when I can to verify I’m correct and not nuts. Or shoot some sure or water through it and you’ll find out if it comes out the scoop on the lower unit.
Greg