Ok thx guys.
my next question.

it’s a 1995 454 Mag Efi engine.
looking for another block to swap things over what blocks can I use?
I believe if I read correctly this would be a gen5 block?
do I have to look for another gen5 block or would any year block work as long as it’s a 4 bolt main?
thanks again

You might need more than a block, those heads need to be magniflex'd to check for cracking, Id look for a gen 6 roller long block if it was me

Thx 👍🏼

And likely new manifolds. Unless it was attempted to be winterized but the thermostat never opened up

Yeah I wonder about that.
I turned the engine over but the water pump was not turning.
it’s been freezing cold here for the past few weeks.
guy said he winterized it.

Did you buy it ?

Yeah I did.
but I knew going in it had water in the oil.
got it for a song and a dance.
I actually really needed all the goodies mounted to the engine and outdrive.
I got the whole boat for less than what it would cost me to get a bravo outdrive.
I just needed parts for the most part.
the engine and outdrive will be going into a different boat.

I fixed it for you...

Well yeah.
All the good parts off the engine will go on a different engine.

Not sure what all the gray stuff is (like everyone else said, looks like JB Weld), but this could be a case of seeping head gaskets. I had the same thing happen on my Gen VI 502 blocks. The intakes like to rot out and dump water into the oil, too. Wouldn't hurt to pull it apart and look - you never know, could be rebuildable.