The cat's I've worked on pull from the tank & spray into the bell housing. It does sound like yours is plumbed backwards. If memory serves me right there should be a nozzle assy on the upper part of the bell housing to spray the oil onto the clutch disc.

You could eliminate the wet clutch set-up & just install a normal dry clutch set-up- I've done that on occasion.

Usually when there's too much oil in the bell housing the starter begins to leak because of excessive pressure. How much oil was in the bell housing when you removed the clutch assy?