If the "add oil" warning comes on when the oil on the dipstick is almost full, the problem could be the float switch in the sump could be faulty. It's a common failure item in high-mileage 60x engines. The warning should not appear until the oil is at the "low" mark, 2 quarts down. About $40 for a new switch and you can install it yourself next time you change oil.
If the dipstick is correct, you are over-filling the crankcase. The excess oil is likely being burned off, that's why the level keeps falling.
Jeremy
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"Buster" in the '95
Our all-Diesel family
1996 E300D (W210) . .338,000 miles Wife's car
2005 E320 CDI . . 113,000 miles My car
Santa Rosa population 176,762 (2022)
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"Oh lord won't you buy me a Mercedes Benz."
-- Janis Joplin, October 1, 1970
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