The tube on the oil fill cap that runs over to the intake manifold places a vacume on the valve cover and crankcase when the engine is running. This vacume forces fresh air to be drawn IN through that breather filter on the side of the engine block. This airflow carries blow-by gasses and unburned diesel vapors from the crankcase up to the valve cover via the lube oil return passage and back to the intake manifold and re-burns them in the engine. This is important as a buildup of diesel vapors that have leaked past the rings can lead to a crankcase explosion. Not very common in diesels of this size but the possibility does exist if not properly vented.
Under heavy load/higher RPM, the quantity of blowby gasses may exceed the ammount of vacume and flow through the crankcase and might lead to a little bit of puffing from the breather. Coolant/water leaking into the crankcase and being vaporized/expanded there would probably make this show up easier. A kinked hose or leaks around the valve cover, oil fill cap and the tube/hose on top would also lead to less fresh air flow through the crankcase. If I was seeing other than occasional puffing from the breather under heavy load, I would be checking those things, the cooling system integrity and the cylinder compression.