Troubleshooting a seized Yanmar engine

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I don't think it matters at this point. You found a lot of water in the engine, the engine was submerged and now it is seized.


Bite the bullet and rebuild it now.
 
Ford Lehman

Good old Ford Lehmans have raw water cooled oil coolers.
If a raw water oil cooler develops a internal leak wouldn’t it pump the oil out before water would make it into the pan. Raw water pumps generally pump at 5-25psi and eng oil pumps pump at idle more than that let alone at speed. If your oil cooler is below the waterline and has a internal leak then water could make it to the oil pan when the engine is off. If that was the case the engine would flood up to the waterline.
 
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