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Sounds like a preventative maintenance move and like Farny alluded to above, if it was leaking at this nut your bilge would be coming on and you'd be tracking wayward mystery water in the bilge.
Sloppy job from the factory or the prior owner probably replaced the steering cable.
I just replaced mine and I can’t see there being a huge leak through there that someone tried to fix. The washer lays flat on the metal of that piece that holds the jets on the transom.
I concur...seems to be sloppy work. There's no silicone or sealant apparent on mine. I keep all the cables, links, pins, well lubricated with silicone and white lithium spray all summer long.