These are best pics I can get.
I’m not really qualified as to how that actually inserts into the block,but it’s feasible to consider that the OP has been into this area when rebuilding his D7 and possibly disturbed something in the orifice.I’m thinking that a piece of blue paper,rag fragment at this point?
It’s a long shot,but if everything else has been done to his satisfaction,it’s worth a thought that the trouble could simply be in reading the oil level.
As another poster here said,it’s worth putting the absolute exact amount of oil in that the manual states.
My D8T supps 34 litres according to the manual.I allways precisely measure the amount that goes in upto 33 litres,then check things as they’ll be some residual still in there somewhere.
Back in the day,I’d simply chuck four 2 gallon buckets into the D342 D8’s and they would be near enough for my taste,but I’m very strict on not overfilling the C series D9 and D8 engines.