Yes, that is exactly what a 1MZ-FE run on conventional oil with unknown OCI can look like. You'll never clean that crust off the valve cover, and it's likely blocking the baffle inlets to the PCV. Since you've already buttoned it up, I'd stick with the synthetic routine unless you're getting rid of it soon.
If you want the PCV system to work properly I'm going to guess that the cover needs to be cleaned or replaced.
For reference here is the rear cylinder bank on my 1MZ-FE at 299,000 miles, along with the inside of the valve cover (and the new upgraded one I replaced it with). This engine was exclusively run on synthetic at a relatively short OCI (around 6500 miles average):
If you want the PCV system to work properly I'm going to guess that the cover needs to be cleaned or replaced.
For reference here is the rear cylinder bank on my 1MZ-FE at 299,000 miles, along with the inside of the valve cover (and the new upgraded one I replaced it with). This engine was exclusively run on synthetic at a relatively short OCI (around 6500 miles average):