Hi Tim, your wording makes your problem a bit unclear.
Is the water coming from the wall, or from the joint where the floor meets the wall? You first say it is this corner, but you also said you can see it "dripping" which would mean it was above the floor.
If it's coming from the floor joint (at the wall), hydraulic cement will not likely work.
Do you have a sump? Near this area, or across the home? Is it currently collecting water & discharging it?
As to the drylok; if the tile adhesive will scrape off, I'd do so, but if it's adhered well it should be fine.