They were among the problem engines for Caterpillar. That group included the 3116 (I had a set), the 3126s, which suffered from casting problems that would make some blocks leak, the 3176, and 3196. I believe some of these engine designs survived into the modern era as various C series engines, and I think they are now much better, but back then, having those engines made your boat virtually un-re-sellable. I would certainly not buy any boat with any of them, although I suppose you COULD argue that any of those engines which are still around have proven themselves as reliable. But I don't know if I'd believe that. And with so many other engines to choose from, why would anyone want to mess with any of those Cats?
The funny thing is that they also built some really good engines in that era- 3208s, 3406, 3406E, etc. Not to mention 3408 and 3412 and its relatives. It just seemed like for a while they had really lost their way on smaller marine diesels. Smaller being a relative term, here.