SQ5 blue o-ring

I recently bought an SQ5 knowing it had a code for bad PCV. Over about a month of driving it I noticed a coolant leak get worse and worse presumably from the water pump. So I replaced the PCV, thermostat and waterpump this past weekend along with some of the other recommended o-rings and seals. When I was at the bottom of the vehicle trying to cleanup some of the coolant I noticed this line has what looks to be a blue o-ring come loose. Does anyone recognize what type of line this would be? It would be on the passenger side right next to the oil pan which you can see in the pic.

That line and the one above it should be the ATF coolant lines going to the ATF inlet/outlet on the Radiator (right side). They come out of the Left side of the transmission and cross over the top and back down to the right side of the car.

I’m not very familiar with these types of lines but from the look of it the soft portion would need replaced. Not sure how that o-ring squeezed out to begin with but how much of an issue do you think this presents at least short term like say within the next week or so?

I’ll have to crawl under to take a look but if it isn’t leaking then I’m sure it is fine. The Colored ring may just be a factory color code during assembly for a quick connection to the right fitting.