Re: hydrofoil or smart tabs
If anything it looks like it could come up a bit yet and if certainly shouldn't wash out, don't know Mercs, does this have a shear pin that could have maybe broken and is lodged so it would make it kind of like a spun prop.
I had a similar boat with 9.5 Johnson and it would scoot sao there is definately some issue with this one, either the engine isn't running right or maybe over propped.
I woudl be tempted to run throught the engine, spark and compression check and change the lower oil to see what si going on down there, do a decarb and clean the carbs just to be certain it isn't an engine issue but that wouldn't explain the cavitation or prop slip, curious.