Thanks Chris. I replaced the water pocket cover, water tube, and the entire impeller assembly. I took off the exhaust elbow from the manifold and removed the exhaust bellows from that elbow. The bellows didn’t seem to be in bad shape even though it is rubber. As GA Boater correctly stated, that piece was the exhaust flapper.
I’m a bit confused as to what I should be seeing. There is a bar that goes across the mouth of the exhaust elbow assembly (Mercruiser part #53113a2). It is a bit loose and appears to be permanent. Is that what the exhaust flapper attaches to or is that part of the old flapper that disintegrated?