I took it off and put two more pieces of original mesh I found inside the previous muffler exhaust and added the stainless dish washing mesh as well, to pack it in tight. I made sure the bottom clip was secure before fitting the exhaust back in. Runs like a top and is satisfactorily quiet now. Also reshaped the outlet of the muffler to follow the original shape before putting it back. I have a new one I used as a guide. No smoke coming out the side either! Pics showing the mower, the previous exhaust with the corroded outlet (should be metal most of the way down -all gone.) and posed next to a sister unit of mine.
Ahh, if only victa had kept producing the thumblatch catcher series, they would be in better shape today!