Water leaking from the spout is a worn washer at the end of the shank. The new shank should have a new washer already on it, just check that the screw is not loose before installing.
I have replaced the seals/washer already.
I thought that you had stated you bought a new shank and had not installed it yet. My advice was to check the screw securing the washer to the shank before installing. If you installed the new shank with the new washer/screw, new packing, packing nut and packing washer and still have dribbling from the spout, you may have to remove them (all of the new parts) and inspect the inside of the valve for debris, scaling or damage where the washer seats to seal inside the valve body.
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