Oh dear
Brings back bad memories for me !
Looks like your liner to case seals are shot

= BIG job that it is often said is better dealt with by getting a recon motor due to the 100 things that can and often do go wrong when stripping and rebuilding to that depth
Mind you, does it have an oil cooler fitted ?
Probably not, but if it has, that is a common cause of oil in the water and dead easy to fix.
Here is a link to a long post that covers the job you will be looking at (note = different symptoms but same job required) =
https://club8090.co.uk/forum/viewtopic.php?f=2&t=52374" onclick="window.open(this.href);return false;
Here is what mine looked like (and yes after buying 2 dud engines I finally got a recon, all be it a slightly used one, but a good un ) =
.
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p.s. = worth remembering that due to the water system on our vans, the residue can take literally DOZENS of flushes to clear it, even after the original cause has been attended to.