Right- the cloudy water/Ethanol layer and the gas on top- I wrote that mine was just gas on top of liquid water and it was only cloudy after shaking the bottle, but it settled out later. There's no milky layer and in phase separation, the only way to remedy it is to remove the layer with water/alcohol.In fuel storage, phase separation occurs when enough water contaminates the gasoline, causing the ethanol to attach itself to the water molecules and leaving two distinct layers in the storage tank.
Again, I have seen plenty of bad gas by working on boats and what I had isn't what I saw in those fuel systems.