3.5l is not "generally considered" too much, it is... If you're reading between the lines with 3.5l, you're probably not inserting the dipstick vertically. Vertical, resting on the lqwer part of the thread should give you close to the upper line with 3 litres. 3.5 will be well above the line.
The grommet that seals the alternator wiring into the alternator housing sometimes leaks, usually because the sheathing has deteriorated. It is normally glued in some way to the grommet, but this breaks up over time. Oil can also creep up the wires inside the sheathing once the seal at the lower end is broken. Depending where the sheathing ends, or how damaged it is along the way, oil will accumulate in the recess under the starter and drain through said hole. New sheathing on the wires and some sealing compound at the end at the stator usually cures it.
piet