What and where is the weeping port on Shimano MTB brake levers?
From my understanding, that port is a pressure compensation port. When the oil level changes because of pad wear, temperature, or a leak, air will enter through that port to balance the reservoir’s pressure. The oil is kept sealed by the membrane, which you might have torn due to overfilling.
There’s a small port in the side of the master cylinder that connects the reservoir to the cylinder. When you actuate the lever, the piston travels past the port, allowing the system to build up pressure. When you release the lever, the port opens up again and does any necessary compensation.