Unfortunately this is not good. This may mean the engine has seized. Let's take a wrench and put it on the crank pulley bolt and try and turn the engine by hand. If you can spin it then we need to find the source of the water and coolant mixing.
Here is a guide that will help with this:
https://www.2carpros.com/articles/coolantantifreeze-in-the-engine-oil
The next thing to do is check the compression and head gasket which these two guides will help with this:
https://www.2carpros.com/articles/how-to-test-engine-compression
https://www.2carpros.com/articles/head-gasket-blown-test
Please run through all this material and let us know what you find but it sounds like we are going to need to at least replace the heads if they are warped, the gaskets or maybe even the engine.
Please let us know if you have questions. Thanks
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Thursday, July 15th, 2021 AT 7:36 PM