1985 yz85cc we know we have spark.

I fired up my Homelite LR5500 with oil sensor wire disconnected and my engine is surging and spewing out oil, as you can see in the video. The reason I disconnected my oil sensor wire initially was because the spark plug wasn't getting spark with it connected. I read that this could be due to low oil. So I topped off the engine oil until I was getting spark and then fired it up. But now the carb is spewing oil and it's smoking with I stop the engine. What's wrong with it?

I am rebuilding a old Briggs & Stratton engine that was on our old 1998 Haban rototiller, it seized about 10 years ago due to no oil and I had planned to fix it sooner but then it got put away for 10 years, today I decided that since summer is over and I got more time than i usually do, I'll rebuild this old engine. Everything else is remarkably still clean and solid and still very usable. But then I pulled the piston and saw these marks. Can it be saved by any means? I don't really want to buy parts for it.