Re: Seals on upper
It looks just a tad too far out for my comfort zone. As to whether it can work its way out or not, those animals usually are set in there rather firmly and don't generally have "play" in them.
You have a photo to reference now, I would keep my eye on it. (Meaning keep an eye on your oil levels and make sure you aren't finding water in there.)
Oil seals are cheap. Gear sets aren't.