Okay after seeing those pics I think I know whats going on.
Valve cover gasket leak introducing oil upstairs. Secondary idea is there is coolant in the oil, once hot it's steam blowing past your bad valve cover gasket into the plug well along with the oil. Possibly through the stud holes. Was the valve cover gasket fubared? Should take a lot of pressure to do that and a bad head gasket could. But you said nothing obvious. Spark plugs loose?
Is this project new or is it your old regular car that you drive? This all plays towards an answer.
I know you have a leak somewhere letting coolant into the oil...
95 E34 530I V2.37
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