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Grey Sludge out of prop

I just got done running the motor on muffs to ensure it would start up after a carb rebuild. after fixing a small fuel leak everything is working great. When I was getting ready to put it away I saw this grey sludge coming from the prop. it is smooth and not gritty. Could it be un-burned fuel from having to prime the system twice because of the leak? Or is it something more serious like a blown prop seal. Am I good to water test my hard work or do I need to hold off?
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The Leaking stopped after a while so I popped the top LU Screw and put a zip tie in to see if it was leaking. it was 1/4 in below the hole with no evidence of water. so i deemed the LU Good. Another board suggested a smell test, the sludge smelled like gas, and not like the lower unit oil. The Lower unit was a greenish grey, in other words very clean.

I took the boat out today and it ran great. no sludge after running. The sludge must have been build up from sitting.
 
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