If you see sludge its a sign of using wrong oil and probably choked pcv valve
Wrong and very thick oil causes sludge too as it wont move fast enough to clean anything. I would suggest to remove tappet cover, fully clean the baffles in it (also remove the chain tensioner with engine at tdc1, clean it out. Check its condition and clean it good, replace its Oring and put back then unlock it from tappet cover side
Replace pcv valve
Fill with good 5w30 and keep on driving, all the above will remove sludge slowly over a period of time and hopefully your noise will go away
Ive done it on a similar engine (1zz)