85xt drive motor

Hello working on my case skid steer 85xt I was loosing power in left side did flow test and think i narrowed it down to drive motor, I pulled motor apart to look for any signs of metal debris or blown seals, the seals didn't look great but were still one piece and no noticible metel shavings but I noticed this rubber in couple spots were I don't believe there's supposed to be a seal not sure if its rubber or silicone and I'm wondering if a good cleaning and seal kit will fix it.

85xt drive motor