Did you notice the block vent "slashed hose" from the block to the spark arrestor dripping or full of gooh? Thinking maybe the hose that burst may of been leaking while you were motoring?
I am a bit perplexed as to how the ""throat" has so much emulsified gooh coating it~~very weird. It must of come from the slash tube (block) or an external source possibly the sink.
Are you sure about the fluid levels?
Gat the compression check done and keep spinning the engine with the water off so it does not seize.
Dave Neptune