The T piece you refer to is for flushing out the engine, after it has been used in saltwater.
One thought; has the outdrive been off lately? There is an O ring glued into a groove on the tilt housing that seals the outdrive water outlet hole to the tilt housing water inlet pipe. If that's missing or damaged, it will suck in air preferentially to water especially when on muffs or the boat is planing. If you saw no water coming out from where the tilt housing and the outdrive fit together during your pressure test on the inlet hose, it's probably OK.
Also, if the nuts holding the outdrive on are not tight, the O ring will not seal (neither witll the bellows!
Graham
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