That white stuff around the seal recess in the case looks like a pile of corroded aluminum, like it was eaten away where the seal was supposed to be pressed in. Na, can't be...
I had the front bevel gear case off twice this year, to service the leaking cover gasket first, and the worn-through broken clutch push-rod the second time. Both times were a pita, btw.
You can NOT service the related parts of the clutch release mechanism without removing the whole bevel-gear case from the engine, plain and simple. There is a tiny O-ring seal on the threaded adjustment rod shaft, only accessible from the back side. It can't be removed from outside, because the threads end along the shaft before the the O-ring. That tiny 30+ year old O-ring was letting oil pass.
IMO, the simplest solution for the shaft seal would be to bed it in some type of hardening-goop to secure it in the case, but just enough to fix ONLY the seal perimeter in-place, just enough to make up for the lost aluminum around it. This would serve as a temporary fix, until you resolve to remove the unit from the engine, to either replace the whole thing or properly rework the seal opening.