This engine might have been in storage for quite a while for this to happen, unless it was abused somewhere along the way etc.
Back off the adjustment screws (on those 2) all the way & let it sit for a while. This will allow the inner portion to return to the 'rest' position.
Change the oil & replace with SAE 10 & a high detergent additive.
Re-assemble & drive it (if not missing) on the highway for 2 hours. This should clean things up. Run that oil for 2,000 miles and re-adjust all the valves if the bad ones worked okay.
Air in the oil has never been a problem with that design engine. That occurs on the 'later' ones (250/292) at high RPM in racing etc.
Good luck.
