The arrow is pointing at the heater core tee.
You might as well do the other connection too. Or you can remove the fitting and put the heater hose directly on the heater core pipe.
As for the smoke, the liquid is dripping down onto your cat.
Do you see oil or coolant signs? How are your fluid levels?
As for the smoke, the liquid is dripping down onto your cat.
Do you see oil or coolant signs? How are your fluid levels?