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View attachment 1859439 replace PCV. I suggest you do a used oil analysis from Blackstone labs They will tell you if there’s anything going on in your engine from a wear standpoint.
That crusty stuff looks to me like the typical telltale sign of an engine that has not had sufficient regular oil changes during it's life. I would be pulling a valve cover to take a look.
With a clogged PCV, there's a decent chance your spark plug tubes may be full of oil from oil pushing past the seals due to the pressure. Doesn't explain the oil loss you're seeing, but just something else to be aware of.
Since I have purchased the cruiser at 129K miles, I've been replacing the oil every 10K with Toyota 0-20w synthetic. I drive mostly local with many stop lights...
I agree on the shorter change interval, especially given your stop-start driving, probably a lot of short trips.
Best way to clear an engine of excessive sludge buildup (other than a total tear down) is to run a few short interval oil changes (~500 miles) with about 20% Marvel Mystery Oil.
Tear down would be too costly.
Do you recommend applying MMO into the engine for cleaning? Or into the gas tank ? or both?
How about an engine flush to clean out the sludge?
I’d also have the dealer change your PCV valve again