Well, I am confident OMC has always prescribed that the rubber seal sleeve faces downward toward the driveshaft or inward toward the crankshaft on engines with horizontally mounted thermostats. That being said, it probably won’t make much difference either way, unless having the rubber lip facing upwards/outwards somehow affects water flow on some engines.
I am not on Facebook, but would love to hear from anyone who insists the rubber lip faces upwards/outwards, or if anyone has actually seen this in print from an actual OMC manual/bulletin…