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after 300 miles , mag has oil inside causing failure. oil is returning to tank what could be the problem.
no oil smoke from exhausts.
Pressure Relief Valve
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The crankcase breather pipe…
The crankcase breather pipe got flattened on my Atlas so the engine breathed thro the mag.
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I would suggest checking the oil pressure relief valve piston. Which may have stuck in a fully open position. This in turn would flood the timing cover with oil which, in turn, would be forced through the magneto oil seal by pressure in the crankcase. Sometimes a simple cure to this is a new pressure valve spring.