Fault light......
Comes on if propane fails to ignite
OR
If ECO T-stat (High temp t-stat--energy cutout) operates (OPENS) whether on propane OR electric (OPENS at 180*F)
Your 'Normal' T-stat is not controlling. It has either failed or is not making good clean contact with WH Tank. (OPENS at 140*F)
The water dripping is from the PRV (Pressure/temperature Relief Valve) due to the very HOT water (OPENS at 210*F or 150 PSI)
Buy new set of T-stats----come as a set ECO/Normal
Replace them. Clean WH tank wall prior to installing new set.
Disconnect wires from t-stats (small lugs go on normal *Brown* large lugs go on ECO *RED*)
Remove foam cover
Pry/bend three tabs out
Remove t-stat
Clean up tank
Install new t-stat....press plastic washer down compressing spring
Secure with the three tabs (Bend them down---then tap them so t-stat is tight to tank)
Repeat for other t-stat
Install new foam cover
Hook up wires