UPDATE: New engine installed and the truck was delivered to my house on the 3rd. Official problem was excessive wear on cylinder #1 rod bearing and the bearing slide up (spun bearing). The dealer was great to work with and it was completed pretty quickly.
UPDATE: They called yesterday and said Ford gave them the ok to replace the engine. Its not clear on what changed, but I am happy its being addressed quickly and the dealership has been very pleasant to deal with. Two weeks until I have it back.
UPDATE: Dealer said no fuel found in the oil and no metal in the oil. They think it may be the timing chain tensioner that failed. They are replacing the timing chain and tensioner to see if that's the fix. If not they are continuing to follow the Ford flow chart of diagnosis. To be continued....
I was literally calling to set up my next oil change this week. So I was at the end of my approx. 5k miles. I checked the oil level maybe once or twice between changes and didn't notice anything out of the ordinary until now. Leveling kit, but no engine mods.
So far the truck is just sitting at the dealer. They plan to start on it next week. The service manager said he was familiar with the Rangers having the fuel in oil problem.
So I was unfamiliar with the fuel in oil issue until it was too late apparently. Started hearing knocking on my way to work and then on the way home it got much louder and sounded like ball bearings were bouncing around the engine! Went straight to the dealer and the oil was way high. Currently...