IS this an Exhaust leak?

[Dulmit]

I can cover the end of my tail pipe and my car still runs. I know the exhaust leaks out of the drain plug for the muffler. I went to get an inspection sticker and the guy said it was an exhaust leak. I couldn't find any posting. Other than the drain plug there is no leak, wondering if it is supposed to do this.
THNX for the info.
Flame on!