...Should a freshly rebuilt engine be?

I'm surprised how much wet oily residue is in the cylinders on my bike.

It's freshly rebuilt with the HRC jet kit in etc. I ran it to set the RC valves the HRC way, probably all of 5 minutes in total - enough to see the needle climb to 70 degrees and the slight water weep out of the head nut.

I didn't rev it past maybe 3k, mostly I kept it around the 2k mark.

Was using 98 octane at 30:1 with castrol A747.