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Normally that would mean the unit is way out of level. You should make sure the unit is sitting level in the wall. Also if the unit is not sealed well you can get excessive condensation that will form on some tubing and drip during extremely high humid times. So make sure it is sealed decent as well.
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Yes caulk, insulation or sealant yes
That should be a sleeve unit that just pulls out. You may have to pop the front grill off and look for any mounting screw to the sleeve but it normally will just slide out.