as you can tell by now, I got a long list of renovation projects

OK here's the deal. We have a basement built with cement block units, those textured ones. Obviously the basement leaks, the previous owner 50 years in the house apparently dug the flow under the footer (!) to make more head space and now that's where the water leaks in.
I want to dig around the foundation and install a drain.
Will the foundation get damaged if I do so? Will it actually help since the floor is about 6" too low? My understanding is the floor has to be poured 4" above top of footer.
Alternative options have been mentioned to me: dig inside and put the drain inside. Don't like that idea, also don't like the idea of sump pumps.
When you create a repeated path for water to flow, wouldn't it wash out the soil after a while?
I think those systems actually make it easier for water to enter the house.
Right now I put new gutters on that drain to the street and sloped the ground. Also installed a surface trench to get storm water to flow away from the house. I poured a 1 ft high hydraulic cement bar around the interior on top of the footer and it works well. Problem: when it rains more than 4"/24h the water level rises over the hydraulic cement and into the basement.
Any ideas on how to excavate? We have clay soil here