I wanted to post an update on my coolant getting into the oil.
After pressure testing and vacuum testing the engine with no signs of leakage I took the engine home and ran it outside the vehicle. Ran a garden hose for cooling. After running for less than a minute I had a small oil leak at the oil pressure hole in the oil gallery/manifold. I pulled out the gauge and noticed that pure water came out of that hole. I then removed all water from coolant system and pressurized the coolant system from the rear coolant drain plug. It was then that I heard a leak sound coming from the oil pressure line hole in the block. Not sure if it was blocked by rust or other crud but now the pressure test showed leakage. I am waiting on engine shop now to see if this issue can be fixed.