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That was the first thing I thought as soon as I saw the pictures--the centrifugal force of the flywheel, it shoots oil everywhere. Rubber shielding lost seal by wearing out due to bearing play. But as mentioned before, it could also be the exhaust manifold gasket. Need to clean it and see at oil...

I had missed that... the side exhaust. how many times on a rtr with a broken gasket or loose screws they caused me an oil contamination.

This looks more like mixture and oil coming out of the front bearing to me, too thick to be pure mixture.This also explains the too rich (fat) carburetion in my opinion. Optimal engine carburation may seem like an insurmountable obstacle, but it is actually quite simple, all it takes is a little...

as you can see from this video, everything flows properly.

As a carburetor, perhaps it would be better rotary instead of slide--making a Gas/Brake linkage configuration like this.

Surely something cheap can be found on Ebay but you have to see with the measurements. https://www.ebay.co.uk/b/RC-Exhaust-Systems-Silencers-for-Nitro-Glow-Fuel-Cars-Motorcycles/182190/bn_7031949445