I set up an M one time with an open center spool and had the same issue. The problem is that when the fluid hits the "T" half goes down and half wants to go up.
What I did was put the return where the cap was and the filler/vent cap on the "T" part. Then the returning fluid shoots straight down. Problem solved.
You could also plumb the return to the drain plug as suggested. I don't like that idea because I think it stirs up the inevitable trash that collects at the bottom.
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