Spark plug looks like excess oil burning and gas generally contaminates oil by the carb float needle leaking gas which goes into the cylinder and from there into the oil. Replace carb float needle AND add a gas line shut off valve and use it when engine is not running.
That oil leak looks like sump gasket leaking requires removing sump, cleaning both services and new gasket using torque wrench for proper tightening. I can send you a Service Manual IF you like. Address below, put in proper format, remind me engine model number and what you want.
Walt Conner
wconner5 at frontier dot com