Theory 1. Yes, possible
Theory 2. It would be smoking like a train and using oil rather than making it.
Theory 3. Seems like your filling to low mark then seeing the level rise counts this out, unless the dipstick tube has come loose. Not likely on an Isuzu engine. Is there any vacuum connection to the fuel side for any sensor, valve or whatever.? If fuel gets into the vacuum pump it ends up in the sump.
When you drop the oil measure what comes out, this will confirm one way or the other. The oil will thin out too so be careful about just lowering the level and running diluted oil.
A front seal is only about $10 but unless you change it yourself buying it is by far the cheapest part of the exercise.
Good luck, John
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