No, it goes all the way to your speedo. But it makes some bends. Try a small drill bit - by hand - twisting in and out of that hole. See if you get anything else.

The hole goes in a bit and then turns 90* and goes up. Look up by the cavitation plate and you'll see a rubber tube (about 1/4"). How is it attached on your drive? Take it off and see if you can blow through it easily. Through the hose that is now in your hand will cause the speedo needle to move a bit. Put a little extension hose on that fitting and you blow backwards towards the pitot pick-up.

Oh, try searching for this topic - you should find a bunch of info on this.

 

Even if it was new this would happen...they never work for long.