Your absolutely right about that oil level. I had a similar issue and figured it out that "FULL" is actually "TOO FULL" on mine as well . It is safer to be on a little under full than right at full. I over filled mine just like you showed and one day I saw a little oil in the bilge. (I keep a clean bilge so I see every drop) Traced it back to a breather hose and I zipped tied a "puke can" to it and lowered it to just below full and no more oil sprayed out. If you are in the safe range... that's good enough you don't need to be perfectly topped.
Boat engines are not like trucks they run at a trim angles as well so an overfilled crankcase could have exasperated effects underway.
Your doing a nice job... I wish I had the energy you do ( laid up with painful back problems at the moment and probably will be all winter) . I would love to replace all the seals and rebuild a couple things.
That thing is going to give you a lot of piece of mind next season...nice work.
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