water out of the prop/ exhaust hole?

Should water always exit the ex./ prop. hole when running with a hose attachment? we looked at some boats and when one guy ran his no water exited this hole but the others did.

 

Where did the water exit?

Possibilities:
1.) thru-prop exhaust - you should see water coming out with the exhaust through the prop
2.) thru-prop exhaust with bad exhaust bellow - water comes out of the transom assembly (where the drive hinges up when trimmed or tilted)
3.) thru-hull exhaust - water comes out with exhaust or through water dumps. Could be stern or side-mount thru-hull exhaust.
4.) or bad water impeller, no water being sucked through, and engine overheats!

The outdrive impellers don't take being run dry, so if someone runs it without a hose connected for more than a couple minutes, it would likely be toasted.

 

well, i got to see the unit in the sunlight today...
The bellows has 3 round holes where the water exits. when the transom is up no water will exit the prop., of course when it is lowered a small amount makes it to the prop. because the holes on the bellows are smashed shut against each other. I have not seen this type of bellows and the holes that are in it seem to be perfectly round, as if they are supposed to be there. the owner says it has always been that way and the motor does not run hot.
as far as other water exits when the earmuffs are on water does exit the hoes above them as well as through the transom hinge area.
thanks stimulous for the heads up, i think the unit may be ok afterall.