magneto floading with oil model 7

I would suggest checking the oil pressure relief valve piston. Which may have stuck in a fully open position. This in turn would flood the timing cover with oil which, in turn, would be forced through the magneto oil seal by pressure in the crankcase. Sometimes a simple cure to this is a new pressure valve spring.

The crankcase breather pipe got flattened on my  Atlas  so the engine breathed thro the mag.