360 LA getting oil in #3 cylinder.

My brother in law recently bought this 74 Duster 360 auto from my neighbor who only had it 3 or 4 months. Now I am hoping I didn't lead him to make a huge mistake.
It has plenty of vibration that seems to come and go at different speeds or throttle pressure. Pretty new plugs #1, 4, 3, 6, 7 are black soot covered. Plugs #8 and 5 are light beige. Plug #3 is black crusty. There is some oil smoke coming out driver's side exhaust. Trying to figure out where oil could be coming from. I turned the engine over 2 or 3 rounds trying to see if all the rockers were moving but I did not measure movement. Bought an inspection camera today to look in the cylinders. And #3 cylinder has at least ⅜ inch of oil on top of a clean aluminum piston. I don't think that was left in there after driving it. All other piston tops are sooty black. Does LA 360 oil rockers through passages in block and head? If so, could oil be leaking into cylinder at head gasket from me turning engine over by hand?

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