A904 Dipstick

I cannot answer your question, exactly. But I know this,
If the level is too high, then the sun shell will pick up oil and fling it all around inside there. There's a good chance some will find it's way up into the vent and drip out onto the ground. This flinging business aerates the oil, and also sends it up the dipstick tube, making it hard to check the level.
So, IMO, the oil level should be below the sunshell at least.
If the oil level is higher than the pan-rail, it will want to seep thru the gasket. So, now, IMO the running level should be below the panrail.
But the filter should remain in the oil at all times.Normally it sits on or nearly on, the bottom of the pan, so IMO, that is not an issue.
The oil level is checked on level ground with the engine running and the trans in Neutral.
Hope that helps.