360 LA getting oil in #3 cylinder.

However, IMO, this should have nothing to do with the oil-washed piston top. Have you done a compression test yet? My guess is that the fire-ring blew out and now oil is coming in thru the hole. That happened to me once. Compression test found it rightaway.
What is the fire-ring and oil coming through what hole? Head gasket?

I have not done a proper compression test yet but all plugs are out and I did connect the gauge to #3 and turn the engine over by hand. I was just curious if I the gauge would even move. After the intake vavle closed, air was blowing out on the compression stroke. I couldn't tell if it was coming back up the intake port (bad valve or seat?) or if I was hearing it through the oil drain area of the head ( head gasket maybe?). I connected gauge to #1 and I could get the gauge to move and there was no air leaking sound.

I have been a my parents cleaning and taking care of them. My Dad would have fallen getting out of the shower if I hadn't caught him.