Yes it does look like your seal is damaged - it is going to have to come apart anyway so strip it down and see what the seal looks like once the top bearing cover is off.
When I did mine I just replaced the bearing itself - item 9 here:
https://rimmerbros.com/Item--i-GRID001542
You already have new housings - as long as they are made to the original drawings they should be fine - you can compare them with your originals to check.