Well, looks like starting the third load of laundry (about 40 gal per load)the tank could not recover and no hot water. Usually only two loads are done. Stopped the laundry and the tank recovered slowly , but at a lower temp 100 vs 120 f. Second cycle was 110.
The tank started leaking from the flue down the burner area when it could not recover with no hot water. The tank is now not leaking now after recovering and two heat cycles. I checked the anode, inlet, outlet and drain valve. Does this sound like condensation from the cold fill water? The water was rusty, dirty and had smell.