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Thanks for your patience, I think I got it now. You need sealant because the packing you are now using does not deform and fill the thread cavity as the OEM style packing was capable of doing when the packing nut was tightened.

With the OEM type packing you wanted just a slight drip of coolant past the packing to lubricate the shaft.

Some photos to show progress.
Packing nut o-ring.
Double seal in housing.
Will run tomorrow to make sure it does not leak.

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No runs no drips no errors 😀
No more tightening of packing nut.

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Nice work. Look original but functions better than.