Hydro looses power as it heats up

In the process of changing the oil. Looks black and thin. Waiting for oil delivery. What would be the symptom of a defective breather cap? It looks as if the larger outside top cap is missing. The smaller rubber plug is in the hole tight.
 
A bad breather will cause oil to weep out from the seals on the axels or input shaft
Heat discolours the oil and metal particles also discolour it.
BEcause of warranty claims ( that were not ) and to reduce inventory most mower companies specify an internal wet brake, so where does the brake debris go ?
 
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