Any more on this? Didn't hear from Tony but thinking a leaky upper liner o ring may also be possible.
If the counterbore is passing exhaust gas it won't take much to get past the oring. And on intake stroke, no suction obviously to draw water back.
Would also account for spitting coolant out.
Metal spraying and re machining counterbores is a common repair on Cat engines as are all the gallery oring rebates on the deck face.
Have you done a leakdown on the cooling system yet?
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