Woke up to flood in kitchen area. Removed everything from cabinet. Could hear water leaking. Could not see from where. None of fittings leaking. Bypassed heater and drained it. Waiting to get to dealer as it is still under warranty.
Well replaced water heater under warranty. Heater is actually 2 pieces welded together via robotic welder. Weld looks very neat and uniform. After welding it is pressure tested and if leak found they spot weld over original weld. Dealer went directly to the spot welds and low and behold that was the leak.