Interesting! I took the boot off and it was in not in as bad of shape as I thought.
OK, new one is on the way so no issue, but where is the oil coming from? The outside of the boot had a light oil film but no so much that it could drip.
The second thought was the swing arm/drive shaft boot. It is bone dry! The bottom of the tranny is clean and dry as is the motor. One can see a little bit of a blowback smear from the clutch rod boot, on the swing arm, but it is a light film?!?!
The tranny oil level is bang on; using the original BMW shock spanner! So, there is no overfill situation. The only thing I can think of is that there is a very, very small hole in the boot.
Unless someone can think of something better, I will replace the boot and see what happens.
???