Did you get a complete engine or just a long block? The complete engine has intake and possibly exhaust manifold. The long block basically has block, heads, and valve covers. The only thing I can think of is a leak at the throttle body if it is warmed with coolant. If not, re-run the compression check. The water can only get it through a bad/cracked head or block, bad head gasket, or through the intake. A compression check should eliminate cracked block/head or BHG if all cylinders good. If there is a problem with comprssion, document and send back.
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