I feel like there might be something wrong

Yes, it is sut (soot) and water mixed. OK for being out of both sides; that would be normal if it is rich.

If the water vapor never goes away, then it is likely to be water into a cylinder; the water vapor ought to go away after about 5 minutes of running, even if there is water setting in the exhaust.

Please pull all of the spark plugs, and take pix, and show them here. Then replace the ignition system and see how it runs.

Does your carburetor have an electric choke?

Is there any abnormal stuff in the valve covers that looks like brown milk? Probably not, but something to examine.