We cleaned up the engine parts and let them sit overnight to dry off. Today it goes back together for testing. We will run it on the bench without a sprocket so we can see where any leaks appear. The suggestion for the talcum powder is a good one for this kind of testing.
I solved the problem of weird oil burping and oil level. I found that the 160 engine has TWO drain plugs and that I had undone only the rear one when we returned from the track. The burping was the air from the breather backing into the rear chamber through the oil in the main area. I guess I was more tired after the ride home than I thought.
This is the secondary breather and catch can. After running it at the track there was zero oil in the catch can.
The shift shaft seal is going to be replaced because it was suspect but all the others looked dry. I don't think this is the cause of all the oil that was leaked but there is no reason to take any chances.
The rubber block that passes the alternator wires is also suspect. It will get a coat of HondaBond 4 before going back together including the holes where the wires pass through it.
Thanks for all the suggestions. All the help is appreciated. Check back tomorrow and I hope to have an answer.