I removed the water pump, having determined that it was the cause of the water in the engine pan. As I suspected once I removed the pump I could see that the lip seals that separate the wet side from the engine cam were failing. I purchased a pump rebuild kit for $120 and an impeller kit for $40. I re-built the spare pump because it was in better shape. I put the rebuilt pump back on the back of the engine, but I didn’t get any water flowing.
I thought that perhaps something had dislodged that blocked the water path. I removed the thermostat, and decided that it was pretty well gummed up, so I cleaned the housing and replaced the pump. The hard cooling line that ran from the pump to the was my next suspect. There was no way to check that line, so I removed it, and the little hop of hose that ran to the T on the bottom of the exhaust manifold and the other little hop that ran out of the T to the thermostat housing. It eventually occurred to me that I had installed the pump upside down. I decided to permanently remove the hard line and replace it with all hose, and since I had the thermostat housing apart, I replaced the thermostat too at a cost of $104. I also replaced the hose barb on the pump with one a little more substantial since I had it off again.
Once everything was reassembled with new hose clamps. I fired her up and everything seemed well. There was tiny bit of water at the bottom of the thermostat housing, but I think it will dry up. At the very leaf I’ll keep an eye on it. I again pumped the water out of the engine pan, and Insolita is again running smoothly.