You're getting boost spikes at lower RPMs, would personally like to see that boost specified taper off 100-150mbar up top too but that's tuning related and not a big deal. Since you can only see 2-3 blocks of boost spike there there's probably even worse in some scenarios, which would explain the limp mode. It's not safe to drive hard as is. The return line obviously has oil on it.
Look at boost specified versus actual. The actual values shouldn't be more than 100-150mbar over. You're maxing the turbo at lower RPMs, fueling should be reduced or actuator adjustment might be needed. I'd start by bumping the IQ up a bunch to see if that remedies things, assuming you have excessive fuel.