Thanks all! I am talking with Ford, as of now I'm unsure what caused it and one dealer doesn't know. I'd be concerned if I can't nail the root cause and it happened again which is why a motor may be a good option.
I'm working with a service director at Ford who can go to bat on this.
Bottom line is no 40k miles car should have this, it's ridiculous.
I have maintenance records, I took care of it. I'm second owner since 15k.
Cars smokes at idle and hard accelv but not like a smoke show or anything. Oil/carbon type smell, not pure oil.
Carbon buildup noted in this pic