Blown Turbo seal?

[Phosoup253]

Vf52 turbo on my outback xt unknown miles, came in a trade bulk deal from a while ago. 
I can see what I’m assuming is coolant bubbling between the turbo and downpipe mating surface. Does this indicate a blown turbo seal?  

 

[KZJonny]

Exhaust doesn't look too bad.

Brighter minds will chime in, but I find it hard to understand how enough coolant would somehow not get vaporized in the exhaust to then get past the gasket and pool on top of the turbo. Seems unlikely

Loose coolant hose connection maybe? dripping coolant on to the turbo externally?

And are you running around without either a heat shield or turbo blanket?! Shame on you. Get one or the other, or both, before you melt a power steering line and start a fire in the engine bay.

[Phosoup253]

Purposely left heat shield off so I can get a better visual of any potential leaks. 

[JmP6889928]

The only possible way there could be coolant in the exhaust stream is if there is a serious crack in the coolant jacket on the center bearing support housing.  The coolant flow passage is completely isolated from the rest of the turbo systems just like the oil flow passages are also completely isolated.

If you're seeing coolant bubbling around the exhaust housing, the turbo is no good.  Can it be repaired?  Yes.  It would require a new center bearing support housing and complete rebuild. 

There is one other thing that could be happening and it's words you don't want to hear and they are the dreaded head gaskets failure.  That can cause coolant into the exhaust stream, but if that were the case, you would see a LOT of bubbles in the radiator reservoir and radiator itself.  

Blown turbo seal on the exhaust side would be indicated by smoke out of the tailpipe tips and it's pretty easy to spot.