there are two possibles for wet spark plugs: (other then a blow head gasket)
the 7.4 sits low in the boat below the water line, and has 6" spacer blocks that are under those elbow you step on to walk in the engine compartment.
The vertical 6" spaces, elbows, and manifolds are ALWAYS full of raw water in the outer chamber of the manifolds. This is like a toilet tank holding water above your exhaust valves.
1. the raw sea water is pumped into your exhaust manifolds on purpose as the manifolds have an inner and outer cavity, inner is for exhaust gasses to escape, and the outer is the raw water cooling cavity that keeps the manifolds cool, and is dumped out the back of the boat along with the exhaust gases.
If you have a leak in the manifolds between the inner and outer chamber, then water will end up in the cylinders, and into the engine oil.
Usually, you will start with a miss in the engine, and then the engine will dry out the spark plug from the heat, the and boat will run fine again. Also, the running boat exhaust gases will push exhaust gas into the raw water cavity.
But, when your turn off the boat, then the water stored in the manifolds, will drip into the exhaust inner cavity and end up in your engine again.
Some water in the engine will not hurt anything, as it steams off as soon as your run the motor.
Its when you leave the boat over the winter and the raw water hydro-locks the rings to the cylinder walls.
2. The sea water can push back up thru the exhaust pipe into the manifolds, but there are little one-way flapper valves like a butterfly that prevent this backflow, along with the exhaust gas pressure blowing out from the running engine, so this is usually not a problem.
So, the engine is not defective if maintained. The veranlift will not help if your manifolds are shot.
Solution, is to user that money to replace your manifolds every 5 years......
(I got new gaskets but it still leaked...., two bent push rods....)