Give that #3 a good compression Test to see if that head gasket is leaking. That is a lot of oil to have sitting on just one cylinder.
#3 cylinder Is right there at the oil feed from the block to the head.
Even with a bad value guide the engine usually burns the oil instead of puddling on the piston.
You would think there would be some oil getting into the cooling system also if the head gasket is letting it by in that area.
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