Went to add some washer fluid, walked away and came back to find this...
The sad thing, is that I seen this leak before. My B5 S4 has a similar front engine back washer fluid leak. It was coming from the the t-connector to the headlight washer nozzles.
I removed the driver side headlight, and found the t-connector... sure enough it was leaking just like how my B5 S4. I honestly hate the idea of a headlight washer system. In fact I disabled it via the vagcom (aka OBD11) so it would never be used when washing my windshield. I found the rubber hose that went back to the washer fluid reservoir, cut the hose and did this hack job to stop the fluid from going down to the head light washer nozzles. I'll come back later and properly plug it, but for now.... no leaks, problem fixed.
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