Yes, it is leaking at the top of the diverter where the shower hose conncets. When I looked at the washer in there, the side towards the faucet had the imprint of the rim it rests on. There was a gap in the imprint however, which matched the missing part of the rim on the faucet.
The hose was pretty tight when I tried to get it off. I was eventually able to loosen it by hand. It was hard to get a tool on it since it is so close to the wall and I didn't want to mar the finish.
If the faucet does need to get replaced, I'm hoping to get the dealer to do it under warranty. Although if I did it myself, maybe I could put in a better one. A single handle one still with a tub spout might be nice. The one I have is very similar to the linked one below. The leak is at the plastic connection at the top.