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it is a "weep hole" for water to escape at the lowest point of the muffler. Since our mufflers angle up, the water will have a tendency to collect and purge easily from this location. Most aftermarket systems like the last Corsa and Magnaflow system I have installed have weep holes in various locations depending upon the orientation of the muffler.
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'21 ZLE A10 Wild Cherry PDR 2:00.78 VIR Full 10.68@131.69 1.68 60'
'17 ZL1 A10 Mosaic Black PDR/Nav 2:03.08 VIR Full 11.003@129.2 1.75 (sold)
'15 Z/28 #325 Black a/c & stereo. 2:10.1 VIR Full (sold)
'12 ZL1 A6 Black 10.52@131 1.55 60' 2:13 VIR Full (sold)
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