1999 200 HP Yamaha Fuel Bulb Prime and fills top cylinders w/Gas

I have a 1999 200 HP Yamaha. The other day it ran rough. Top end OK for about 20 Seconds, then bogs down and dies. Wants to surge at 3/4 Throttle also. Suspect O2 sensor, pulled and cleaned. Checked Fuel system such as filters and they were OK, When priming my Water separator I had noticed Fuel leaking coming out of the Prop exhaust and my bulb would not get hard. I had thought it was jus spillage coming from the cowling section after draining the silver thing... Went to start the motor and it acted like it was locked up. Pulled plugs, cranked motor and fuel blew out the top 2 cylinders....Swapped bulbs and same issue...So, what is happening. Also when at idle I can prime the bulb and flood engine. This does not happen on my other motor...What do you think?
Thanks

Model# Serial#
Carb or FI?
Sounds like the fuel pumps diaphragm is shot?
The floats need adjusting?

It is a Saltwater series not sure the serial number at this time. I will look into these ideas and follow up with the solution. Thanks for the insight