1965 Barracuda with 84 318

Probably not the t'stat area per se... the coolant is pressurized by the pump in the block and heads and intake all the way up to the t'stat even when the t'stat is closed.

But..... did you do flushes of the crankcase after the last time, to get all the water out? And primed the oil pump to push diesel through the system while slowly rotating the crank to get the diesel in all the passages. I have done so but it took 4 flushes to the get most of the water out, and I had a lot less coolant in that engine than you had. I just have to wonder if this is just residual coolant still in the engine that is now just coming out....???

Did the coolant level drop? (Of course, that would be impossible to tell if you still were getting air out of the cooling system.)

I still had air, so the level dropped when the T stat opened. You are right though..... just noticed it when the tstat would have opened. coincidence.

I'm thinking once temp was up and the pressure was building, it leaked. certainly not residual water from the last time. I got it all all, primed and flushed with fresh oil. Had maybe 10 min of running time.....1 min and a time. Then the first continuous run up to temp, to purge all the air out of the cooling system, is when I noticed the tailpipe vapor. :(

Just picked up a leak down set up. that should tell me something...but may not be definitive. cooling pressure test may gve more info.