Oil spewing out of the dipstick

If you clean to check and clean the breather, it is located under the flywheel; so it would need to be removed.
1. Remove screws securing breather cover. Remove cover.
2. Remove breather spring, disc and screen.
3. Then clean the area and reassembly.
4. Torque the flywheel retaining nut to 51.5 N·m (38 ft. lb.).

If repair kit is needed it is PN 14 050 01-S. includes gaskets, spring, valve disc, and filter.
koh14 050 01-s.jpg
This repair is only slightly mention in the service manual but you probably the rest of the info so here it is.

XT Series service Manual
 
replaced the carb, took off the flywheel and checked the breather valve (white plastic disc with spring on top) and cleaned. started up and pressure was back on dipstick cap after shutting off. Pressure is building in the crankcase. oil was at level before starting.
 
pulled flywheel. cleaned breather valve, changed carb. also pulled head. Head gasket was ok. replaced to spec. funny thing though. I turned the motor by hand, nothing until the engine made half a revolution then oil came out of the oil fill hole (dipstick removed) in large quantities. continue to turn until no more came out. I see oil in the pan, but no more is coming out. if overfilled, how come the dipstick wasn't reading (as before I turned it the first revolution, dipstick read normal).
 
Of course oil going come if you are hand turning it with dipstick out. It is going to take the path of least resistance.
 
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