well I'm guessing they thought they had an idiot who would spend $400 in parts and labor for $80 in parts and 30 minutes in labor. And I'm also guessing by the technical questions I was asking that they realized I had an understanding of how the engine works and wouldn't be easily fooled or scammed and decided not to test the waters on me?? No idea.

Just realized my new phone doesn't mess up the layout of the post when I add images so here's a picture celebrating that

 

I think one of the top banjo bolts on the turbo is a coolant line going to the thermostat housing. I replaced that bolt and washer recently.

 

Condensation is normal.

 

Exactly. The engine turn gasoline and oxygen into carbon dioxide and water vapor, mostly. A little white mist when cold is normal.

So is water dripping from the tailpipe. Small amounts of coolant won't noticeably affect the appearance of the exhaust.

White smoke from a warmed up car, on the other hand...

 

Most mufflers have a drain hole. But, it is not supposed to drip constantly.
If water is dripping out the pipe all of the time it is coolant leaking into the combustion. 3 ways: the turbo, the oil cooler, the head gasket.