Seen same issue on other motors, the explanation is quite simple : the lower crankcase's gasket is shot, when the motor runs at higher revs, cooling water floods the pan, 100% of the exhaust smoke that should exit right through the exhaust tube, middle leg and prop is leaking around the pan along water and motor missing due to too much contaminated carb air intake and final crappy combustion.
Solution : Torque all lower motor's pan bolts fully tight with a large wrench to achieve a good leverage, go for a water wot test and report if the issue was canceled, if not or was lessened. Remove the entire crankcase and install a New base gasket, check if in need to aply any sealer at both gasket's sides or it's the one that comes with a glued coat at both sides...
Happy Boating