Interestingly, this fact is mentioned in my Seadoo operators guide, but NOT in either the M2 Jetdrive operator's manual or the service manual.
From the operator's guide: "Water Bypass System: At idle speed, there will not be a water flow through this outlet. When engine is running above idle speed, water must flow through this hole. This allows air in engine water jacket to escape."
This seems to contradict the service manual, which says, in the water bypass installation page: "The water bypass system is designed to improve powerhead cooling at idle speed."
Maybe they mean, almost idle speed.
Mike