Okay, so water should obviously not be leaking anywhere. If it does, check if the hosetail on the exhaust elbow is smooth enough and not corroded and tighten the hoseclamps sufficiently. If corroded, clean it up. If corroded through, the elbow needs replacing, although on the MD22 it's usually only the injector part that rots away with some regularity, and luckily that's available separately.
If the boat is moving (rolling), some of the water sitting in the injector hose and the heat exchanger can trickle down the wet exhaust, but that should be only a very small amount. Might be enough to make you think the whole exhaust system is brimful with water when it isn't though.
When the engine is off, there should not be water sitting this high up in the exhaust system. If it does, investigate why by following the exhaust system to the point where it leaves the boat. First thing to check is how high it sits in the exhaust muffler, to make sure there even is a problem at all (other than a small leak, which it sounds like you fixed already).