There definitely isn't a good seal or any chance of it, mechanically, between the washer and the drive box end. Someone posted about later versions of this bearing having a rubber seal . I wondered about silicone – more in terms of wrapping it around the outside rather than coating the washer. I don't think it's great in such a high pressure area as it tears, but I'm also thinking of Hermitite, probably Golden Hermitite, to seal the washer / drive box / swing arm gaps. I've removed the hugger (so it's me rather than the drive box collecting all the crud!) and I suspect that water is working in just as it falls from the sky, whether the bike is moving or not.
What do you reckon about Hermitite?