i think you need to ditch that catch can and get some valve cover breathers like this: https://www.summitracing.com/parts/mor-68781/overview/ I have actually found them at my local advance auto parts store before...
then get the 5/8" hose to connect them to the flame arrestor.

interesting. My question is, why would it be dumping such copious amount now just because it is full?? I drained it out now, maybe i should try reinstalling?

If you lost a quart of oil in 5min at 3k rpm then thats more then that catch can holds to begin with....it wont hurt anything to empty it and try again but i think you will still be in the same situation as is....

Just started the boat and absolutely no oil leaked from the valve covers. Just had some smoke coming out. Took a video I can post to YouTube and link if you would like. The boat is a weird set up. I have to turn a fuel primer on, then turn and ignition switch and then start with another button. Absolutely no key for the boat.

That's what I would do. 400+ cubes is a big small block. The pistons are going to displace a lot of air inside the crankcase. That air has to go somewhere (out the valve cover holes) and it is mixed with oil vapor, which is accumulating in the catch can as designed.

I originally had my 540s vented to the flame arrestor. They pushed so much oil that the air bleeds in the carbs would get oil fouled and cause idling issues. That is why I went to the puke tanks.

That "smoke" is oil vapor which is turned back into oil once it is collected on the catch can (puke Tank).

That's a little excessive and doesn't sound too good. I'm thinking you probably burned a hole in a piston.