Cause of smoke? Topic is solved

[bfry]

2006 XC90 2.5T AWD

Put in used engine after old engine blew. When it blew it was a smoke show like none other. I did start and drive car with blown engine maybe 5 or 6 times to move it around property before I put in the used engine (has 65k) and it was a total smoke machine every time I started the blown engine - as to be expected.

I bring this up because maybe some oil worked it’s way into exhaust system and is now burning off?

Current symptoms - car emits smoke from front underside after driving for 10 mins - it can sit and idle for 30 mins. and no smoke - only after driving for a bit.

Drove it for 10 mins today - started smoking, put it on ramps to see where smoke is originating.

Looks like rear most portion of “braided pipe” is somehow burning off some oil?? I mean that is definitely where the smoke is coming from, no question about it, when I crawled underneath to look. I did not see anything dripping, BUT, “braided pipe” looks saturated to me and oil appears in that same spot (frame underneath rear most portion of “braided pipe” - 2nd pic) after being wiped clean after every time I drive it.

Again, "left over" oil being burned from when I drove it around with blown engine? Or something worse...head gasket, etc?

Coolant and oil level steady. Compression test 155, 150, 135, 155, 155 on cylinders 1-5 respectively.

Pics below...

Thank you.

[bfry]

Was left over from previous blown engine - eventually burned off...