The color you see in the oil is probably UV dye.
I have read that too much oil is not good for the compressor and it can indeed prevent it from cooling as well. A very experienced AC guy told me, however, that too much oil does not hurt anything as long as the system cools okay.
This guy has a large automotive A/C repair business and sells parts as well. That's all he does and is a very helpful person when I'm buying parts from him. He seemed to dispute much of what I have read and have been told regarding auto A/C.
For what it's worth,
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