This^ It would not be a good idea to submerge the cam but an extra ½ or even 1 litre won’t do any harm. There is no risk of seals blowing.
I would say that with 4 litres of oil rather than 3.5 the oil temp would be slightly cooler. More volume. Some of the Mercedes car engines take 7-8 litres more volume cooler running However I wouldn’t go more than 0.5 litres over. Over filling modern car engines can cause issues
Yep, you can happily stuff 3 litres in a type 1 with no ill effects. And there are no seals to "blow out", whatever that means.
My Mercedes takes 6.5 liters . If it has 6.8 or more a warning comesOn the computer. I had a changed a few months ago. And told the guy only put 6 L in. But he put 6.5 in. So I had to take a bit out. For the Stupid warning light to go away. The computer tells you exactly how much is in it in that car.. If a T4 2.0 engine is low 1 cm. It is a half of liter low, I remember this before I rebuilt the engine in the bus with leaking covers etc. And weekly had to top it up
What about this one on the pulley end of the crank? https://volkswagen.7zap.com/en/rdw/typ 2 syncro/t2/1971-29/1/105-4000/ #13
The only oil it sees squuezes out of the bearing next to it and runs back into the case via a narrow passage berween the two.