That Nytro kit is a rear mount Garrett ball bearing turbo with an electric oil scavenge pump located at the front of the sled. Highly likely that his oil pushing problem is a result of inadaquate shutdowns...
I bet a cold beverage that your buddy was just shutting off the machine completely and wasn't allowing the electric oil pump to run on for a few moments (with key on) after the engine stopped and rather he was just killing everything at once, or not allowing it to run on long enough...
See, the turbo still sees oil pressure feed for a while after the engine shuts down (even with an oil line restrictor) because it takes a few moments for the engine oil pressure in the galleys to completely bleed down to nothing... and the amount varies with each engine. They bleed down the easy path turbo oil feedline and then this oil is not being scavenged away (and can't gravity drain) so the resultant oil buildup in the turbo center section is like running the turbo with the oil pump unplugged everytime he shuts it down.
Garrett ball bearing turbo's can't have any restriction on the drain back or they will weep oil, reason they need gravity drains or scavenge pumps... so the pressurized oil from the engine bleed down is weeping past the turbo ring seals and into the compressor housing and/or exhaust housing, and in the muffler packing causing his smoking at start up.
I run the oil pump on my rear mount Apex for atleast 20 ample seconds after the engine stops to draw off any residual bleed-down oil pressure from the turbo lines and I haven't had ANY oiling issues in 3 seasons since building it. He should have been advised to do this, too.
Oil out the breather can be a result of running the oil level too high, not enough room for the crankcase to breath so the pressure pushes oil mist... typical unless it's puffing real good when running then could be a hurt motor.
What boost level was he running? Your buddy should call FPP and he'll get his questions answered.