2007 Yamaha 4HP coolant leak

[FarrellG]

2007 F4MSH has about 100 hours 99% slow *****ing speed.
Ran up in tank today readying for fishing .
Halfway down to the lower unit the shift rod goes into a plate through a rubber seal which has a small chip out of it. A tiny bit of hot water is leaking/bubbling out.
Just above this is a 1/4" thick rubber seperator between the lower unit sections.
There is a slight bit of movement here with sideways pressure on lower unit.
Do I have a problem or can I run like this?
Ran fine with good telltale stream. Minnesota freshwater use.
Help will be sincerely appreciated.

[boats.net]

Common to see water come out around lower housing, as water exits engine it goes through mid section and out through prop.