Water in Oil

, the first 3 seconds or so was pure water (not coolant green, clear water)

I know the water was the oil breaking down along with the temp changes,

There is ZERO CHANCE that much water is from condensation. Since it does not seem to be coolant, someone PUT IT THERE in my opinion.

Either that or the engine was somehow in a place where water dripped / spilled/ rained into it, or the block (cooling passages) someone put water in there (and forgot) and it actually DID leak from the cooling passages into the pan..........in which case you have a problem......intake gaskets, timing cover / cover gaskets, or a block or head problem.