Sorry been away from my PC for a few days for a medical matter (not Covid related at all).
Hydraulic vs hydrostatic test – this is just word choice these days, the terms are used interchangeably for boiler testing. I remember at school we were told that hydraulic was to be used for describing systems that involve moving fluid from place to place to transfer energy / force, where hydrostatic was used for describing pressure testing of pressure vessels with water only, no air, to high pressures, and very little or no fluid movement during the test.
I mentioned no air in my first post in this thread as a safety precaution. Water is for practical purposes not compressible at temps and pressures found on earth. (Scientists may be able to compress it in special labs and equipment, and I can't comment about water on other planets, in the universe, etc – just want to be clear). Air is very compressible and stores energy as it is compressed. If a boiler under test with water only in it, and fails, you get a small spurt and the pressure drops safely. If a boiler under test with compressed air or steam, and fails, you get an explosion and there can be shrapnel or fragments flying around. Test only with water in boilers, no air, for safety.
Re your safety valve leak – was it leaking at the thread or at the valve and seat? You can use sealant on the threads but NOT on the valve itself. For the best designs I have seen on safety valves look up the ones by Gordon Smith. Some time ago someone published his designs in various sizes for various scales or models in PDF form. I can't forward them here due to copyright issues but you should find them easily with google.
Good luck.