The crank case breathes as the pistons go in and out.
So the crankcase gets pressurized as the pistons come in releasing pressure (plus a small amount of oil vapor) thru the breather valve but then the CC goes to a vacuum or lower pressure as the pistons go out
They go in and out together not opposite of each other like a 4 cylinder.
If you remove your filler cap you defeat the breather valve because the The air is going to go in and out of the filler hole easier than thru the breather.
On a lot of single and twin cylinder engine you will get a face full of oil when you do that
All normal.
The oil should be making its way out of the breather tube into the carb inlet.
So check the flatness of the breather cover and reseal it.
If possible throw the gasket away and use a heavy duty black or grey silicone.
Make sure your breather hoses and clamps are all good also.
I don't know for sure but i wonder if a leaking rear main seal could sling oil up there
Some of the others here with more experience with this engine may know of other oil leaks that show up from there
Most airhead owners run the oil level half way between the FULL mark and the ADD mark