If your head gaskets are sealing, you have that much compression, no oil to speak of in the air cleaner then I'd GUESS the oil just about has to come past the oil rings which they don't have any affect on compression.
I've only had two Vanguards that were "bulkers" and they were both blown head gaskets due to overheating. One of them quit smoking right away. The other took a long, long time to quit smoking due to the muffler being loaded up with oil.
I've seen a Vanguard that was broke (rod) but I've never seen one worn out. The last head gasket I replaced, the dealer gave me a thicker composition head gasket instead of a steel shim. I don't know what that's all about but I used it.
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