Regarding the leak, it is almost certainly the seal or o-ring that is seated on the shoulder of the HP chamber before installing the HP seat retainer. Earlier MK10s used a 013 o-ring for that, probably a 85 duro, but later kits replaced the o-ring, which was finicky to seat properly, with a more idiot-proof crush seal that has a square profile and fits nice and snug on that shoulder. So you could fix it by taking off the seat retainer (don't disturb the seat itself, just leave it pressed in the retainer) and then replace whatever is in there with a 013 90 duro EPDM or viton o-ring. You can find a socket (from a socket wrench set) that is the approximate size (a bit smaller) of the o-ring and use the socket to push the o-ring in place with a bit of firmness. A wooden or plastic dowel the right diameter would work fine as well. I have a socket that I use for it, but I can't remember what size it is.
Then you can re-install the seat retainer and your leak will be gone. It's not a cracked seat, (although you can look at it while it's out) and MK10s never had a straight shaft piston with no shoulder. Early MK5s did, maybe that's where the confusion was. There might be a small amount of IP creep after because the seat/piston might not exactly line up. I wouldn't worry about it, MK10s usually have a small amount of creep until the seat breaks in, IME.
Regarding flooding your regulator by keeping the valve off, the only way the 1st stage would get water intrusion would be if there was a serious leak, or the 2nd stage purge was depressed while the reg was un-pressurized. Otherwise the 2nd stage seat would seal off water getting into the 1st stage, at least theoretically. It is an 'upstream' valve at that point because the water would be traveling from the 2nd stage to the 1st stage, so presumably the increased pressure in the 2nd stage body (from depth) would not push the 2nd stage valve open. But if you bump the purge, you are mechanically opening the valve, and then water would be free to travel up the hose into the 1st stage, and also into your SPG.