If you got a Yong Heng without the water separator, the "simple version", I would upgrade or replace it. The water separator is the aluminum rectangle to the left of the cylinder in the picture. If you are purging the system every five minutes and changing out the tiny Hong Heng filter every twenty minutes, used filters can be dried and reused, you should not have too much of a moisture problem. I use one of the Tuxing three media filters after the Yong Heng filter and it has stayed usable for a year now with 20-30 minutes a week use. The smell will always be with you it is the oil in the crankcase of the compressor. Different oils smell different so you can change the smell but not get rid of it completely.
https://www.aliexpress.com/item/32891898253.html?spm=2114.search0302.3.65.73bf3038EAZHqm&ws_ab_test=searchweb0_0,searchweb201602_0,searchweb201603_0,ppcSwitch_0&algo_pvid=d56fba52-1e30-4986-9527-01dcbb9bed7e&algo_expid=d56fba52-1e30-4986-9527-01dcbb9bed7e-9 It's a good idea to put the filter above the compressor in a vertical position to control the moisture better.
If you actually have oil in your water you have a serious problem. The cylinder piston is cracked or leaking around the rings and the cylinder is also leaking into the coolant pathways. Whole head assembly is inexpensive and should fix you up.
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