My IMHO, that timing sensor is wrong for the application. It wouldn't surprise me if it turned out that the sensor was never designed for use in "wet" applications. I fiddled trying to seal the original with a new oring, the specified oring, two small orings, several types of sealers, jb weld, etc. I finally gave up, installed a new sensor, specified oring and some gasket sealer....still not happy with the results. However, every other stupid minute leak, weep or seep I had on the bike was resolved to my satisfaction. Yeah, as mentioned in another post here, the sensor does "swell", I don't know if it is from the engine heat, synthetic oil, i don't know. Other v11's I've seen have the leak, seep, weep, there too. Maybe there are a combination of issues there..wrong sensor for the application, oring size/material, sensor bore/counter bore incorrectly machined into the block or specs are out of tolerance or wrong. Who knows??!! OK, now I'm venting....apparently.
Anyway, thanks for listening, there are far worse things that can afflict our v11's, have a nice day!
Art