OK, so this 10hp still has the larger gearcase, correct? I don’t know of any taper on the driveshaft, but it is possible. Wear in the seal area of the driveshaft should be fairly obvious as either a grooved area, or rusted/pitted area.
What part number seal are you using? Is it OEM? And yes, there were changes to some of the OD dimensions of some of these seals, so it is not difficult to end up with the wrong one, especially if the gearcase has been swapped out over the years. Does you new seal appear as the its OD will fit properly into the gearcase casting?
I don’t think the driveshaft OD dimensions changed over the years of the style of gearcase, mid 50s to late 6os, but I could be wrong. I would have to research it. There are so many little changes that have occurred over the years, we often don’t discover them until we are working on the stuff and pieces don’t fit.