If your woodchips are getting wet, you aren't getting enough cooling post-bubbler. IE your square tube cooler. You probably also want to see if you can catch condensate at the bottom of that or else water sits in that tube and will revaporize. IE the relative humidity right above a body of water is 100%.
What you have is essentially a bubbler with a condensing column (the water heater), but when your water starts to heat up in your condensor it starts to boil, and it doesn't really do a lot to get the water out because it is at a higher temp then the temp water vaporizes at or anything else that condenses below around 100C.
You have a couple of options to help get the water out. The first is to get your cooling loop ie squares tubes so they actually can cool down the water vapor. The second would be to circulate the hot water through a radiator system(hot water in the US is only supposed to be like 50-60C, you are a lot hotter and could scald.) . You might extend the column up and add fins. You might be able to circulate water in the bubbler part to keep that cooler as well.