I wonder about that loop and the upsidedown filter. Did the rental place change the plumbing around so that they could use cheaper filters?
Do you have any picture of how it was plumbed originally.
How old are the hoses? Can a work drive clamp even tighten enough to seal that heavy of a hydraulic hose like they are using for the suction line?? The classic problem with worm drive hose clamps is they rely on the elasticity of the rubber to make the seal. They can't tighten up to compensate as the hose gets old and hard.
Most old hoses that cause suction leaks are longitudinal splits along the inner surface of the hose, and they tend to run parallel to the hose direction. So you rarely see cracks by inspecting the ends of the hose.
The reason you may not be seeing air in the oil might simply be that vertical distance and low flow between the sump and the cage the air may give the air time to exit the oil and form a bubble at the highest point.
I love reading oldnslo's pressure analysis; what a good analytic mind he has! .....but I think your best clues are simpler: 1. it's happening at the cage, and 2. it is getting worse. I'd like to explore your original idea of isolating & pressurizing the suction circuit to look for leaks. And also compare the suction circuit with OEM.
rScotty