I think it's normal for some water at the exhaust. If you notice factory chrome tips have weep holes in the bottom.It's gonna happen when you go from cold to hot. Besides wouldn't a freeze plug pop out if the motor froze?
I would think so, but It looks like ther was some form of adhesive put on the frost plugs when installed. I got the car un assembled, so I do not know what adhesive was used, but I would still think that it would pop out befor the block cracked reguardless of the type of adhesive.
