Gentlemen,
It's hydrogen gas bubbles. They are produced in the cell. One electrode produces Cl which mostly dissolves as hypochlorite/hypochlorous acid and the other electrode evolves H2 gas which is not as soluable in water
Definitive ChemGeek thread is here
The pH rise is both due to aeration/CO2 out gassing and the production of hypochlorite which is alkaline.
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