Omc Saildrive leaking water and oil from intermediate housing

[WaltK61]

I was having a trickle type leak on my zephyr. I took the motor out and on on the intermediate housing there is a triangular shaped area where the gasket rests on. at the apex is an opening about 3/16 wide. It looks like its been machined but I don't see it on the exploded view of the parts, does anyone know if this should be there? i also replace the water pump and I am getting water and oil bubbling through that opening. Help!!!

[WaltK61]

I have no leaks in the leg or around the prop. I believe that the water pump is pumping water into the drive and mixing with the oil. Has anyone ever experienced this? And I am also getting water into the bottom cylinder.