If the brakes stopped squealing, and the pad thickness is OK, then I would focus on other things. Sitting for a while will result in squealing brakes.
Wetness on the right (passenger side) of the engine is indicative of leaks from either the cam seals or the front main seal. These are a bit of a pain to replace. Timing belt has to come off, and a couple of things come off the back (driver side) of the engine to lock the cams in place. You’ll need the cam locking tool to do the job.
But those seals fail when the PCV system is plugged up, and it does no good to replace seals that are being assaulted by engine crankcase pressure, because that crankcase pressure will blow even new seals out of the block.
So, I recommend a complete PCV system replacement. Every Volvo needs one, usually by 100,000 miles, and you’re well past that. Moderate skill level. Takes the better part of a day and $300 in parts. Do NOT skimp on the parts and try to clean/re-use the hoses or components. At this age, after decades of heat and oil exposure, those parts will simply break.
Be certain to clean the block-oil pan passage. I personally prefer to remove the oil pan for that work. (It’s a bit of a pain, 30+ small bolts, an hour or two to complete, and you’ll need anaerobic sealant) but a flexible wire brush, like a gun cleaning brush, could work.
This is an example of a good kit: https://www.ipdusa.com/products/4988...e-volvo-114177
Get to know IPD. A great source of maintenance and repair parts, performance upgrades, and technical information. I’ve been a happy customer for 20 years, over the course of 5 Volvo wagons owned.
Current Fleet:
2016 Tundra Crewmax 4WD 1794
2005 MB S600 (126K, Michelin AS4, HPL 0W40)
2005 MB SL600 (55K Michelin AS4, Mobil 1 0W40)
2004 V70R (143K, six speed M66, HPL 5W40)
2004 XC90 (235K, HPL 0W30 Euro)
2002 V70-XC (295K, HPL 0W30 Euro)
2002 V70-T5 (225K, IPD bars, Bilsteins)
2001 V70-T5 (125K, IPD downpipe, cat back and other mods)
1932 Packard Sedan (straight 8, dual sidemounts, original paint and interior, Shell Rotella 15W40)
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