Looks like gear lube. Was the remote reservoir on the engine empty? The hose you pointed to comes from the reservoir and connects to a fitting on the drive.
Under Documents of this site you will find the Mercruiser manual for the Alpha so you can see how it’s plumbed.
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1997 Silverton 362, 7.4 Crusaders
1997 2400 SCR, 5.7 Vortec / Bravo 2
Mike
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