The scenario on that engine is probably that it had sat for a while before YOUR initial run when it "smoked a lot"
Inside the VRO pump one of the umbrella valves was possibly stuck open slightly allowing oil to migrate back down your fuel line. Usually as the fuel bowls lose fuel due to evaporation it is replaced by oil if this valve is hanging a bit. Makes for a very smokey start and initial operation.
The good thing here is that your system is apparently supplying plenty of oil ! If you want to verify the pump is operating properly you can always mix oil with your gasoline and then make a mark on your oil tank to monitor oil usage out of the tank.
Now, your next "helpful" reply will probably be that "I heard they all had problems and you should disconnect it" Obviously your engine has survived a couple decades so far or very close to it with the pump. However, that VRO pump is also an excellent stand-alone fuel pump. The oil side can be disconnected along with the wires. The Oil tank and line and wires can then be removed from your boat and free up a bit of room. Your choice.