1985 300 TD 1981 300 SD
I agree it needs a water pump asap, I hate to think of the possibility of a corroded impeller not circulating coolant while the engine is running and no one watching the temp gauge.Which pulley did you break free with the pipe wrench? The one with the fan, or the one in the forefront of the video? The one on the forefront, which is your power steering pump, is clearly turning, and is not seized, in the video. I suspect the smoke is coming off the water pump pulley and following the moving belt to the power steering pump. Recall this thread started with a fan not turning.
Anything you freed up with a pipe wrench is not fixed, and will cause you more trouble, likely sooner rather than later. If the water pump seizes you can launch the fan through the radiator, for starters.