So you’re saying it should be like the second pic..?
Flipping it upside down from the way it is in the first pic so that it curves up is exactly what is going on in the second pic.
let me get a better picture of #2 to see if you think that is correct.
I am voting for the first pic you posted as the correct orientation. My 66 LTD looks as if that seal has never been taken off and is oriented in the way the first pic you posted is.
Also, I took at look at other 66 Ford products and it seems that the orientation of the first pic is correct. Do a search of 1966 Mustang hood to cowl seal pics and you will see that orientation is correct. Figure the seal does the same thing in multiple cars, namely keep the fumes of the engine from getting sucked into the cowl.
I looked at the 1960-1964 parts catalog since I had it available, but the pictures weren't detailed enough to see orientation. The assembly manual might show. I would look on my car but it's been painted a couple of times so no guarantee it's correct.
This is my '64, glass guy didn't get the screw through the one end that i am holding, i just haven't fixed it yet.
My old one was in great shape but not very rubbery anymore so it was easy to tell direction to put it on. Not sure if this helps or not.
The one in the second pic doesn't look right at all but how does it deflect any water with it curved down? For those with a 65/66. Does the hood sit right on it so it seals it and that causes the water to have to go to one end or the other?