My question is, if this were the case, where does my engine breathe?
Does it breathe into the primary chaincase?
No, the A50/A65 engines didn't breathe into the primary case (as Triumph twins did from 1970-on). Your A65 should have a timed breather on the drive-side of the camshaft, - check your parts manual at the page showing the camshaft detail, you should see the breather assembly parts = breather disc, rotary valve, peg, rotary valve spring, etc.?
There's normally a breather vent pipe from the crankcase in the area in front of the gearbox output sprocket on pre-'70 Triumphs, so I guess the A65 vent arrangement is similar?
If the oil level in the chaincase has risen since you checked it, then the crankshaft drive-side oil seal is probably leaking, allowing engine oil to get into the primary case?