There are two non adjutable tower types for the oil pressure relief valve housings. A short tower cap that resembles a Bat Masterson type derby, and a tall tower cap that resembles an Abe Lincoln stovepipe hat. If you use a short tower on a crankcase that is superposed to have the tall tower, the oil pressure can drift around like that. The case that uses the small tower cap also has a cage inside the engine to keep the ball centered on the relief valve seat. The case that uses the tall tower doesn't have the cage and the tall tower cap keeps the ball aligned with the seat. When you use the short tower cap on a case without the cage, the ball can drift around and make the oil pressure weird. I would check this out, if the transducer proves to be good.
Good Luck,
Mahlon
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