Farmall cub 1957

So I recently acquired a 1954 Farmall 300. I had my head crack checked and it came out fine along with new valves and planed. After installing the head with copper coat on the gasket in the right position it is getting water in the oil. Each day if you go out and crack the drain plug you’ll get water out of it. Any help would be appreciated as I am stumped. Thanks

Thanks it has a hole in it i was trying to figure out what it was. I thought something for smv or umbrella or something. Thanks again.

Does anyone know what this little rod is that sticks up on top of the pto housing? It bolts to the floor pan. Umbrella bracket?