See it the float is adjusted properly easy to do on a Holley. All of them have a screw plug in the side of the bowl to check the level. If you cannot set the level properly the float is damaged or the needle and seat are damaged or have contaminates in them.
One of the most crucial, yet overlooked adjustments in a Holley four-barrel carburetor is the float.
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Holley demonstrates how to properly adjust the fuel level and the float on Holley four-barrel carburetors.
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The smoke is likely from so much gas in the oil it has gone above the rings if you get the fuel under control it will quit smoking. Also if you have had the oil level that contaminated and that high in the engine a compression test it not going to be accurate.
I would not change any other settings till you get the fuel level under control, you are just confusing the issue and making things more difficult to diagnose. Get the float set, (Fuel pump maybe as mentioned above) get clean oil in it then change the plugs. Then determine where you are.