No. It was letting contaminants from the environment in. It was getting high levels of silica and a few other elements (I live in snow country and I assume it is from the roads being sanded and salted). Either way contaminants were making it past the element.Was the K&N filter oil getting in the engine? I don't see what else it could be.
If its from filter oil, do you think it never had a chance to dry after being cleaned/re-oiled before installation and the engine sucked some of the wet K&N love juice in the engine?
If its just the filter oil in general regardless of dry time, why not just de-grease the K&N and run it without the oil...which is actually better for trapping dust without robbing airflow. Out here in the desert I only clean my K&N. No filter oil added. Otherwise dust and sand cakes up in it and cuts off flow.