Water in drive shaft bellows

I have a 260 mercruiser. I just pulled My out drive for a shift cable and shift cable bellows replacement. When I pulled the outdrive there was water in the drive shaft bellows, but as far as I can tell there is no hole or splits in the bellows. How could water get in there if there is no hole?

a very high bilge water level at some point

Hmm? That could be a possibility. The shift cable bellow has been torn in half since I bought the boat about 6 months ago. I have just been using it and pumping it out with the bilge pump. I have never seen the water level get that high, but I gues with splashing around and such and no telling how high the previous owner let it get?
How does water enter the exhaust bellows from inside the bildge?

I guess I should go ahead and change the Gimble bearing while I am at it. I have been hearing a fair amount of grumbling or gear noise comming from the back.

from the lower hole with the yellow arrow