Can my oil issue be due to the compressor not fully unloading prior to reloading ? In other words the compressor does not fully blow down when unloading?
Normally that would not be a problem.
Oil in air is most of the time caused by a dirty/old oil separator, blocked/dirty scavenge system, or in some cases by overfilling the oil level, using wrong oil, or mixing compressor oil.
When did you last change the oil separator (running hours?)