Aqualight wet niche question

Hello,
I am new to this forum and am posting my question here b/c i do not have access to the "pool construction" forum. Last season I noticed that I had a leak in my inground 16x32 so i had a leak detection guy come in - he was able to determine that one of my lights "aqua light #570868" was the cause of the water loss - the tech guy pooled the light fixture from the niche and put epoxy in the niche where the cord goes into the conduit. This stopped (or slowed the leak) greatly that the water loss I had for the remainder of the season could have been attributable to evaporation. Moving forward to this season before I open my pool and the water is already low I decided to raise the water above the lights to check for leakage and sure enough there is a leak. So i drained the water below the lights and pulled the light to research the niche myself. After some research on the internet and on Pentair Pool Products site I saw that the niche is a "wet niche" and the pool water goes in the conduit up to the pool water level - now i am thinking what the technician plugged with epoxy was supposed to be there and possibly my water loss was through a crack in the conduit.

Now my questions - #1 will having epoxy in the niche effect anything?
#2 wet niche - seems odd that there is water around electrical wiring but that is the design, what throws me off is that there is water in the unit surrounding the bulb ( the part that is attached to the electrical wire that I can bring onto the pool deck) - is this right? is this supposed to be air tight??? i dont believe so b/c i believe the water is what keeps the bulb cool

Any help anyone can provide is greatly appreciated - not sure if i need a new gasket on the unit.

Thanks,
Frank