My oil filter does not look good.

To tell I should pull the distributor and stick a screw driver down into the shaft and see if it will wobble correct?

Or you could just yank it because it's going to need completely gone through after finding what's coming apart anyway.
Looks like rod/main bearings to me.
With tri metal bearings they all have copper in them, so it could be main, rod, or cam.
I suspect mains caused by cam bearing, because you would probably hear a rod that lost that much material.