Re: water from prop
There are a couple of approx. 1" idle relief ports in the transom shield that the water normally comes out of when on muffs. Are the plugged up with anything? OR, there is less resistance to the water flow going out the prop. That is where most of the exhaust and water goes when on step anyway.
If you don't have any idle issues in the water and no overheat problems don't worry about it.