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Thanks for the comment regarding the height of the bucket. We position it clearly higher than the engine so it can drain into the galley sink if needed. A compression check is in order. I did locate an older thread that addressed possible causes for water in the oil, lots of rabbit holes to go down! Trying to start with the simplest diagnostics 1st. We've had this boat for many years operating with the same exhaust system and both winterized and commissioned it exactly the same way without this occurring. Only thing different is prior to start up last season I replaced an older heat exchanger with a new one and this spring replace the exhaust flange to the manifold that had started to throw off smoke. When we removed it, it was quite charred and starting to break down.
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