The breather is really simple....just a cover over a hole really!...but mine seems to collect fluff and crud that sits on the grease that falls off the grease nipple for the rocket shaft....worth a look though.
I agree about the noise from the box in reverse! Take heart that at least you have a proper marine JP....far superior to those with modern reversing boxes!
I think at worst the noise might be a bearing but it might also be a bearing on the prop shaft and the noise may be travelling up the shaft...personally I would use a drilled plug and see how that goes....just see if the noise gets worse. Also check the colour of the oil when you change it....if a bearing is wearing it will show up with "glitter" in the oil.
My brass plug just has one hole of about 2.5mm drilled through it.
Edited to add
I've now cleaned the breather hole in the brass nut out....whoops!
Here's some pics! Hopefully....