Muffler leaking water

I just noticed that m my muffler appears to be leaking water, what is happening?

No, you are not imagining this and it is quite normal. This is a normal byproduct of the engine’s combustion where moisture will collect inside the muffler. If there isn’t a way for this moisture to escape, it will sit inside the muffler and cause it to rust, eventually leading to a premature failure of the muffler. This is complete normal and to be expected so do not be concerned about it.