Do you have an Illustrated Parts Manual? Service Manual for for 1965 and Prior Models also VERY helpful too. Easy cure would be to swap in a good used lower unit complete. Ask around, Rebuilding has 3 issues…sourcing parts, doing the work without Mercury Service Tool(s) and getting things
apart. Mark 55 and Mark 58 gear cases are same. An AOMCI classified ad MIGHT produce a good complete gear case assembly which would take an end wrence and a few minutes to instalk AFTER you get the old one off,
Several of the larger Marks and Mercs have passed thru my hands,
but, I stick to working on the Antique Mercurys.
Louis