IMHO I think they either over greased the bearing (likely), failed to replace the front grease seal (also likely) or used the wrong lube (less likely)....It is pretty easy to tell when they are over lubed, the bearing housing will run pretty warm to the touch and will fling snot everywhere...

Welcome to Brads wild world of broken boats......................I mean SCJB 

GT

Over greasing can cause an issue with overheating the bearing because of lack of room for heat dissipation and the expansion of the warmed up grease causes the mess once the oil drops out of the soap..

Will it cause damage??   It will eventually, if  the excess grease is flinging out of a seal, I would say that damage should be unlikely. It's all a crap shoot for the most part.

Also FWIW, the pump would need to come virtually all apart to replace the rear bearing seal. 

Good luck!

GT

  Diver? How about passenger error. Hey, wheres the pic of the new boats? Yeah, I think GS Marine is in for a Ear full on Sat morning...

  Well, its out, so what you gonna do about it. I went by So cal today to take a look and there was nothing to look at. I was a little disappointed

GT Jets, thanks for the info on this issue. The shop called today to tell me the "new" seal they installed had a rip in it, so they are going to tear the jet down and re-do.

I am glad it was an easy fix (for you  ), better safe than sorry IMHO..

GS Marine comes highly recommended, they are very stand up and do quality work I have seen first hand, you will come out smelling like a rose...

GT