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Seems like it would have to be the scupper. Just to be clear that you need to run it on water hose. Engine on, water on, water off, engine off. This may be understood but just covering bases.Once you get the engine squared away figure out what let all the water in. Scupper maybe?
...and in addition to running the piss out them, I would change the oil a few times more for good measure. Maybe overkill, but it's cheap and easy to do so why not?If not done already.... run the piss out of the motors (back and forth on the lake for an hour) to burn off any trapped moisture and follow the run with an oil change. Fogging the motor is good advice to protect from any corrosion between now and your next run.
Could it be that rocks are added to the sealant to prevent someone from digging in and making a simple repair; forcing them to buy an expensive replacement?What is that "crushed rock like" finish? Is that as designed?