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Is the engine a 351W?
The water pump seal typically leaks out the weep hole under the shaft, unless there is a crack. I would look at the gasket. For one reason it's cheaper.
The bolt on the thermostat housing looks suspicious. It looks like the nut under the bolt head is what is tightened to the housing.
Yeah, that's the first thing I noticed too and a red flag that some gomer with wrenches has been attacking the truck in it's past. A pressure test would tell but lacking a pressure tester, and using the "throw parts at it hoping to fix it" I would address the thermostat housing first because it's easy. Make sure everything is clean, flat and not pitted out. Get a new water neck if it's pitted. New thermostat and good gasket, the correct bolts. See where it goes from there. Also, it the intake is aluminum, those will eventually eat the intake gaskets around the coolant passage and leak there, very common on the 5.0.
Also, if you see a lot of pitting, like where the hoses clamp on, you really should flush the cooling system and install new coolant. This happens because owners do not take care of the system, coolant becomes acidic and electrolysis sets in. coolant should be flushed and refilled every 4 years.
Ported thermal vacuum switch. It is part of the 70's emissions system. Since your engine is not stock you may or may not need this item. If you do NOT have to pass emissions inspection, it is not needed. Picture is only an example.
Also the thermostat housing may have been replaced and the replacements often have the hole for the TVS that you just plug if not needed. I find it to be the perfect place for an electric fan switch, fan doesn't come on until t-stat opens.
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