Water not coming out of tattletale hole should have nothing to do with thermostate. On that motor if I'm not mistaken you should have 2 holes on back side of center section, should be water mist coming out of there when thermostat opens. First pull that fitting out and check it for any trash, blow out the hose that goes to it, take a small wire or something that will fit and make sure the pee hole is clean even though you had water flowing. Then with all that off and the cowl off turn on the water and see if your getting any flow out of it, then crank motor and see what happens. If no water flow, pull lower back off and you need to blow air back through that fitting hole to try and blow out any trash. Then recheck water pump was installed in right direction, and that water tube is clear and double check that upper seal on pipe is good. When reinstalling make sure it is going in place and seated properly.
Plus you can check thermostat by just removing it and run motor without it.
Proud Member of Team Geezer
Charlie Weaver USN/ENC 1965-1979