67 twin turbo dart

That’s your plan? That thing is only running on 4 cylinders and they’re pig fat. I’d be doing a lot more diagnostics before I pulled an engine. Did you check injector wiring? Verify all 8 injectors are firing? Verify firing order and spark at all 8 coils? Cover the bases before starting over. Even if the rings are shot, (your compression and leak down numbers say they’re fine) you should be able to get a few pulls in and make decent power on the dyno without hurting anything. Get it running on all 8 before you go pulling the engine. That oil could be sucking in from anywhere if those cylinders aren’t firing. Are you’re dyno guys even remotely competent in the basics here?
Oh I will be going over it before I do anything. Injectors are wired in firing order, coil packs are wired in firing order, I personally did those, since I had to change the wiring on the injectors to match the new LS firing order of the cam. Not sure if the versa fueler is causing the issue causing a mixed signal or what, just asking Matt at diy to see if I can run them straight. I don't want yo have to pull the motor, I'll be doing some checks, before I even started the car I tested the injectors and coils signals and felt them click when tested and they went in firing order due to the MS3 just has ABCs labeled on the wires same for the coils. Unless the coils are bad on those cylinders. I agree that the test came back looking fine numbers wise. Just the oil on the plugs worry me a bit, but agree should still make power.