Hole in the muffler

When I traded a couple weeks ago for my '01 Limited, I mentioned an exhaust leak sound, about half way down the length of the vehicle. The dealer put it on the lift and showed me a hole in the muffler. The hole looks like what a nail punch would do, and is located on the forward facing face close to the bottom seam. They said it's a "weep hole" to let moisture out.

Double barrel shotguns have weep holes for this purpose, and I refinish them as a hobby.

I looked at him and decided to let it go and not question him, but while perhaps plausible, I don't buy it.

What's the story in your opinion and am I ok to patch up the hole until I replace the muffler?

If you can patch it, go for it. But usually these small holes are indicative of metal getting cancer and more holes to come. I would replace it

The way the hole is sloped around the circumference, this was a deliberate hole.

In that case, plug it up and see what happens

i had a small hole right in front of the catalyst converter tried to patch it worked for a bit but it flexed to much and moved, patch broke apart tried again same thing. just took it to top gear got them to fix the problem. was done in 2 hours and they through in a stainless performance muffler with a little roar sounds a lot better and it replaced the hole pipe line from just in front of caty to the rear so solved future holes