Exhaust Rot

OK, so the ski IS a 1996, on the second engine but first exhaust muffler.

Recently I've notice nasty corrosion where the manifold pipe connects to the muffler...the big rubber on the back (foot tray) side of the ski. It's dry and powdery..and running the ski on the flusher, no water is leaking from it...but it's nasty and appears to have rotted from the inside out...ski runs 100%, so no Symptoms...

Anyone seen this, and why ? I ride fresh, and do flush after. I ordered a new-used muffler from a vendor so I'll be replacing the whole thing, but....
 
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