Below is a picture of a water pump from a M103 2.6 engine.
I assume the hole pictured is a breather hole. I also assume that the water trace from this hole indicates that the internal seal inside the pump is cactus and the water pump needs to be replaced as it can't be prepared.
The water pump is OK in operation - i.e. pumps coolant around very efficiently. I initially assumed I had a leak from the O ring between the block and the pump and replaced it. Further leaks have led me to this finding pf leaking from the breather hole.
New pump required?