1988 Johnson 90hp Water in cylinder

I purchased a 1988 Johnson 90hp VRO this spring. Installed it on my 1960 17'6" EM white. The first time I used it I found it was lacking power. Not a lot but 70hp could walk away from me. Changed plugs when installed. After a few trips I decided to see what the spark plugs looked like. Pulled all the plugs and noticed #4 cylinder looked milky but still had coloring like it was firing. So I pulled head and replaced gaskets. Still getting water droplets in cylinder. Cylinder compression test was 125 in all cylinders befor and after. Any suggestions?

Lower crank seals

Just replaced exhaust cover gaskets. Still have water droplets. How dose water work it's way up to the crank seals? I'm running it with muffs and a storage bucket filled with water to keep the noise down.

I will pull the power head and replaced the seal. Any other problem areas I should take inspect? It was run in salt water a lot. I cleaned up all the ports in the heads.