Zinc plug is leaking on our 38 hp Beta diesel engine

Middle of September 2015 - At private slip in Nuevo Vallarta in Banderas Bay, Mexico

So we sent this off to the Beta Marine support forum to see about the leaking plug.

We have a Beta 38 hp engine with about 640 hours on it. We changed out the zinc in Zihuatanejo, Mexico and then sailed and motored back up to Puerto Vallarta, Mexico and the bolt that holds the zinc in leaked the whole way. Not bad but enough to drool salt water onto the engine and motor mount. Not good. At the time we did not want to take a chance on stripping it out as we were not by any services.
 Recently we removed the zinc and checked out the housing the sink fits into. We probed around with a wire and there is nothing in the housing to block the zinc from screwing in all the way. Next we checked the threads in the housing and they look fine. We then used a plug without the zinc in it and screwed it in tight using a 9\16 socket and wrench which fits it perfectly. It still leaks and it is tight.
At this point we are at a loss as to why it leaks?
This was always an easy thing to do, replacing the zinc without the plug leaking.
What am I doing wrong or not doing?

More to be revealed...hopefully it is an easy fix!

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