Ford 7710II Water in engine oil

Ford 7710 II last year had water in the engine oil, My Experienced Mechanic tore the engine completely apart and he was impressed as it showed absolutely no sign of wear at all. He checked for blown head gaskets, cracks in the engine block but could not find anything wrong with it. So he poured some block seal and head gasket repair (K&W) into the radiator just trying anything that might solve the problem. That appeared to have solved the problem as I used it last fall to carry hay out of the field. Well the other day I was bushogging in some very thick briars and the air filter light came on the dash. after using it a few more times I am seeing water back on the dip stick.
 
90% chance you have a pinholed block, a.k.a. cavitation erosion. The block seal just bought you a little time, but it will get bigger.
Unfortunately, the only repair is to strip the block down bare and re-sleeve it. If you sleeve it to standard, you can reuse the pistons.
 
There's also a slight chance you could have an issue with the engine oil cooler. The best
thing to do if you want to pinpoint the issue is remove the oil pan and pressurize the
system then check for leaks.
 

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