A slew of things could be wrong...but excessive oil on a VRO equipped motor is usually air being introduced before the fuel pump. The other possible reason are bad one way direction valves in the intermediate housing of the VRO pump, that allows the poppet to POP prematurely, which in turn forces the oil into the mixing chamber.
There are tests using a vacuum pump with gauge, and pressure pump with gauge, that will help diagnosing if the intermediate housing needs replacement.
Also an easy test to do, is to run a 2 foot clear vinyl 1/4 ID tube with 6 inches of the tube marked every 1/2 inch.
run that tube to the oil inlet and fill that tube with oil....and keep it vertical.
run the motor....in 1986 the vro would use up a 1" column of oil in around 9 pulses at 800 rpm (the variable was great)....later models, the test states something like 3" column in 6-8 pulses at 1500 rpm (1" in 2- 2.6 pulses) (they reduced the variable quite a bit ie richer at idle than before)
lastly you could run a clear vinyl fuel line (I think 5/16 or 3/8) FROM the fuel pump outlet and look for air bubbles.
I suspect carb issue.
