Does this engine have a mech fuel pump? If so, is it new? I have seen them fail and pump fuel into the oil pan while still providing enough fuel to run the engine. I've seen it happen on 2 SBC's and a few air cooled VW's.

The rise in oil level with no loss of coolant is a clue. Has to be fuel, since that is the only other fluid in the engine.

If it's not the pump, then the carb is dumping way too much fuel in. Edelbrocks don't like more than 4-5 psi of fuel. It used to have that in the manual. The last "stock" AC pump I threw a gauge on put out 9 pounds and caused the Q-jet I was tuning to flood like crazy.