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The hoses are hooked to the heater core through the bulkhead connector.
The reason why the hoses can be rotated is due to the design of the connector.
The design was "borrowed" from Ford, they have been using it since the middle 80s.
Needless to say that the connector is prone to leaks because of the movement that is inherent in the design.
I have never removed the one on my 95 850 or 98 V70.
There should be one or two "O" rings sealing the hose to the bulkhead connector.
That would be the most logical point of failure.
A special tool is required on that type of connector.
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