Pump Issues

[Kronk]

I bought a used Gen-X PCX-40 pump and hooked it up as my closed loop pump the other day. Its rather loud but the main issue is the ridiculous amount of micro bubbles its producing. I left it running for a few days thinking that maybe there was just some bubbles in the lines or it needs to break in somehow. I am confident there are no air leaks in the plumbing as I left it off for several hours and did not detect the any moisture around the fittings.

Only thing I can think is that the seal on the pump is failing and its sucking in air right in the housing. But apparently the pump has a seal less design... I am really lost on this one. Any ideas on what might be causing the bubbles ?

Thanks,
Ken