The aluminum timing covers corrode and get holes in them. That's how water gets into the oil. Best bet is to just change the timing cover.
So I found some good news/bad news.
There was only one separator plate - not the matching pair. Interesting.
There's was TONS of sludge and crap behind that separator plate. I mean it was NASTY.
However, I discovered a good-sized hole worn through the timing cover. That's good news and bad. Good news is that perhaps my engine block is not cracked, but the bad news: I've now got a timing cover replacement job. That's a chore. Still easier than rebuilding the entire engine.
Wondering about just yanking the engine to just do main and rod bearings and perhaps the rear main seal. Freshen up some gaskets, paint it, then reinstall. Can deal with the timing cover while she's on the engine stand.