From the look of it my block where the dip stick tube goes in has some blockages is it supposed to be the same size hole as the dip stick tube
No, tube broken off in block?
Hard to tell how deep that inner smaller bore is but I can tell you FEs have a stepped bore by design. The outer (larger diameter) receives the oil tube. The bottom of the dipstick tube cannot be installed any deeper than the smaller diameter bore in the block. I can’t remember how deep the outer bore is but it isn’t as much as you might expect. The tubes usually go in 1/4” to 3/8” or so. Here is a picture of my S-motor with original dipstick. Notice the tube bulge is well out if the block.
