Sounds like it is leaking into the transmission from the crank case which would on most of the Honda's I'm familiar with indicate a right side crank seal (behind the clutch/counterbalancer/water pump mechanisms), a potentially cracked case from a previous bottom end catastrophe, or a sucked gasket. Not familiar first hand with the LTs, but basically its leeching air out into your transmission somewhere
Best to find where it's leaking before just throwing parts at it. Definately won't hurt to have new crank seals. Recently worked on two different Blasters with bad crank seals. One, the clutch side seal was in several pieces and had sucked trans dry but hadn't destroyed piston "yet". Other one stator side leaked enough it smoked the piston. This was on a "flipper"
IMHO, crank seals should be considered "preventive maintenace" if you have no idea how old they are, or you know they are 5+ yrs old, change them. Way cheaper than pistons, etc.
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