Jim:
I finally found the reference for that. It's from "How to keep your volkswagen alive...etc." by John Muir. Page 75, March '72 printing.
"One of the problems with the VW engine is that too much is that to much is too much, so if too much oil gets in the crankcase, it will tend to blow out the front seal or make the oil cooler leak."
I appreciate your input to the contrary, and you may very well be correct because you are an expert, but I have gone by one or another edition of this book for over 30 years and it's helped me push my bus over 300,000 miles through all 48, make several solo rebuilds (including one in the desert sand with scrounged piston/head), and the bus is still in daily service after my most recent swapping in of a super-beetle engine.
The one time I had a clutch soaked in oil I immediately checked the oil level and it had been overfilled. I was traveling and very stupidly allowed someone else to change the oil, I did not check his work until it was too late. I had to pull the engine and replace the seal and clutch plate.
That's my experience. I guess I won't be adding that extra quart of oil for cooling after all :-)
Best Wishes