I've seen cracks around btwn the plugs as well as where D&K mentioned on stock engines never rebuilt. Freeze plugs get easily confused as a safety net from blocks freezing.

I've had an engine crack right down the lifer valley because it froze. I didn't know it right away either. It took a bit to show up.

He thought the engine was toast before I said I'd have a look at it for him, so if in fact it leaks after I replace the freeze plugs he's only out my time and 15 bucks for 2 plugs. The oil is right at full and clean . I did run it on the hose for a couple minutes to see where the water was coming from , but it was just running out the holes with no pressure, so once done the real test will be it it has other issues, and I warned him of that.
thanks for all the replies everyone.