[trularin]

You know, it looks like the bearing isn't pressed all the way on.

This happenes once-in-a-while, the person doing the pressing encounters a stop and thinks it is done, but in fact has about another 1/8" to go.

If the seal is new and the bearings are not pressed on, you may only need to press the bearing on the rest of the way.

Does this happen? YES!!!
Will the seal leak if the bearing isn't pressed on all the way? YES!!!
Is the seal bad? Probably from riding on the edge of the axel, maybe.

I would take this axel over and ask if the bearing can be pressed on further. If it moves another 1/8" ( or there abouts ) I would think that I might get a scale and see what ti should be pressed on all the way.

Replace the seal and measure.

Just a thought.