The breather vent should have a wire mesh in it. For it to be spraying out the vent I would suspect the pressure side (fuel in line) to be leaking in just the right spot to spray on the vent.
With that said those return lines are known to leak at the joints but its more of a drip. The stand pipes are also known to break off and be laying in the bottom of the fuel tank. With a broken stand pipe and a dripping fuel return line you can fill the crankcase with diesel rather quickly even with the fuel shut off. But this would not account for the spraying of fuel.
Another common spot for fuel leaks is the seals on the injector pump shaft. This will also fill the crank case but will not spray fuel out breather and is shut off when the fuel is turned off.
This is the reason I suspect the pressure side where the line bolts to the injector. Get the valve cover off and have a look see. It is tight but you can get it off with the fuel tank in place.
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