when the drive is submerged in the lake, the relief holes give an excape passage for the exhaust and water flow to prevent back pressure in the exhaust system, which could cause a water reversion into the exhaust manifold, that could cause a hydro-lock, water in the combustion chambers, that would caust substantional engine damage.
The relief holes are just a way of helping prevent that, but the holes and the exhaust thru the drive are in the same passage, no diversion or anything like that, just closer to the water surface when the boat is in the water, any pressure will take the least path of resistance.
When the boat is under way, the prop will draw the exhaust and water flow from the motor thru the prop, that is the least path of resistance, the prop creates a vacumn for the exhaust and water flo from the motor to pass through, greater than the exhaust and water flow pressure from the motor .