Water leak while on hose

[72 Invader]

I was running the engine, 250 I6, with the hose on the outdrive, 1 drive, and the water was exiting the exhaust relief ports and prop as usual, but there was also some water coming around the lower shift shaft.

I don't recall this ever happening before. Has the lower shift shaft seal gone bad? I haven't checked the lower unit oil for water, but I don't know if this leak would put water in the oil.

Thanks in advance for your help.