Your description is a bit confusing. You first mention a leak near the recirculating hose but no mention of previous problems with it recirculating water instead of draining water. So I presume this second fault occurred after removing & replacing the diverter valve. The odds of 2 faulty valves are almost zero. Are you sure the diverter valve has been installed the correct way? It has a wax solenoid which when power is applied heats & expands the internal wax causing the plunger to move out & push the valve over to the diverter hose side (blocking off the drain hose side. Power goes off and the wax cools retracting the plunger in time for the drain cycle at beginning of the rinse. When the diverter is cold make sure the open side is where the drain hose is connected & the side that is blocked is connected to the recirculating hose. If that is okay, then power on machine & fill bowl about half way using diagnostics mode (press the cold water button to turn on fill valve. If you fill during normal cycle the diverter will start heating which you don't want at this stage. Then take out of diagnostic mode and back to normal. Select final spin & press start. See if all water drains out to sink. If it does then all good & try a full wash. If after 10 secs or so it starts diverting water & recirculating then that will mean the wax solenoid is getting power on when it shouldn't i.e. a faulty control board.
Lincoln Appliance NZ
May 2014