These have a rudimentary crankcase ventilation system.
The blow by tube on the right beside the distributor is where air enters the crankcae, ( where I believe yours is leaking from) once you have that cleaned, check the vacuum tube that runs from the air breather to the back of the cylinder head to be sure it is clear and creating vacuum while the engine is running. The air cleaner may also need to be cleaned by rinsing all the accumulated oil & dirt in solvent & air drying, & be sure replace the oil in the cup with the proper viscosity and up to the proper level.
The only other way I can see oil could build up is the return from the head to the crankcase is collecting around the blow by tube area, might want to pull the valve cover and at idle check to make sure there are no obstructions or gunk causing the oil to pool around where the blow by tube comes out the side. Since you have that off already I would start it up & see if there is any air vacuum, or pressure coming out it, & let us know how much oil is coming out with the tube off.
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