Thanks to all you guys that took the time to answer.
I bit the bullet and ordered the 460 jet boat pan from Armando's.
Pulled the motor and replaced the pan and tube. Put it together and dropped it in the water. Started and warmed up. Throttled up 1 grand at a time and like magic, the problem is gone! Gotta hand it to you guys and Armando, this is the last thing we would have thought of. But I'm now a true believer.
The Milodon pan, upon removal, was even hard to empty by hand when tilted to the back to dump it out! The oil just wouldn't run that way easily, and it was the way the oil was supposed to go! Now I see why I was having the issue.
Anyone need a Milodon pan cheap?