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The answer is yes, having that much oil in the system can cause all kinds of crap to happen. Blow out seals, o-rings, etc.
I would start with a scangauge and check all your sensors. It sounds like you have a high pressure oil system leak, but it will be easier to tell once you actually check the icp, ipr, ficm, sync, etc values.
Id be draining the oil,,, leaving the drain plug out and make sure the fuel isn't diluting with oil. You can cycle the key but obviously do not crank the engine. It's wise to double check any diagnosis before jumping to conclusions.
Do you have an egr throttle plate? If so disconnect it and see what happens.
Do you get a p1000 dtc or a system pass message when chevking for codes?
When it dies does the glowplug light come on?
Disconnect the ebp and see what happens?