[2007 ford f550 72000mls. v10 automatic. motor ceased oil level good.] pulling 40ft. pipe trailer. had tow button on. oil level gauge wasnt marking. turned truck off, checked oil under the hood. level good, a hair below full mark. turned truck back on and gauge worked. turned tow button back on and 2 miles down the road oil gauge dropped to low. sounds from truck like exhaust has hole in it was made. squeeking then breathing exhuast sounds. then motor ceased. will not turn on. will barely turn over. oil level was checked again and was good and slight smoke came out of the oil cap when removed. did not smell burned.antifreeze level good.

Sounds like the bottom end went out in the motor. Whoever tried to tell you the oil shifted is full of garbage. The oiling system is pressurized and designed to not starve the engine of oil under normal use. Proving that a quick lube place is responsible for engine damage is nearly impossible which is why many people won't use them. If you do you have to inspect the fluid levels and check the filter and drain plugs yourself. Every time before you accept the vehicle back and sign anything. Sorry to say it sounds like you may be spending big $$ to fix your ride. It's possible that the bottom end can be redone but since it ran hot I would not risk it. With aluminum cylinder heads it only takes one time of running hot to cause damage to the top end of the motor.

Begin with the basics....
INSPECT COOLANT LEVEL,
Low ????,PRESSURE TEST SYSTEM,
PRESSURE TEST RADIATOR/EXPANSION TANK CAP,
INSPECT DRIVE BELT(s),
INSPECT COOLANT HOSES,
INSPECT HEATER HOSES,
INSPECT BYPASS/MISC. COOLANT HOSES/PIPES,
TEST THERMOSTAT OPERATION,
INSPECT RADIATOR COOLING FAN(s)/CLUTCH OPERATION,
INSPECT CONDENSER/AUXILARY COOLING FAN(s) OPERATION(s)
INSPECT RADIATOR & CONDENSER FOR DEBRI,
OBSERVE COOLANT TEMPERATURE GAUGE OPERATION,

If you need further help, reach me via phone at https://www.6ya.com/expert/ralph_2f0886b7d6af32ce

It does have a towing package right? A button on the end of the gearshift that you push in when towing? It sounds like it is in too high of gear. Maybe trans fluid gets hot and turns on the light? If it dont have the towing package? Are you keeping it in overdrive? Shift it down manually and keep it in 3rd when hauling any kind of weight.
Not sure if this helps but I know peopl that have burnt their transmission out pulling trailers in O/D

If I were you I would put an oil pressure gauge in place of the factory pressure sending unit, these can fail sometime when hot and cause false reading at the gauge, of the pressure seems ok replace the sender, oil viscosity can affect pressure readings but not to that extent, also check the simple things like your oil levels as these are commonly overlooked

MAY NEED A ADDITIONAL TRANS. COOLER

All I can tell you, is I would not own any vehicle with a 3.08 Gear

You need at least a 3.90 just to have a nice driver or even consider towing

If you have a stick shift, you rent a 2 wheel tow dolly and run the front tires onto it and strap it down. Put the truck in neutral and away you go.
If you have an Automatic you want all 4 wheels on a flatbed or tow trailer. You rent a car hauler trailer and piggyback the truck onto the trailer. A good rental will know the weight and rent you the right trailer.

Disconnect the wires from the sending unit. Using an ohmeter, measure the resistance of the internal coil. If there's a good continuity (1 to 1.5 kilo ohms) chances are, the wires are pulled. If resistance is more than 1.5 kilo ohms, replace the sending unit.

Your vehicle timing chain jumped a sprocket
spinning a bearing means that the bearing does not get enough oil between it and, it's rod; causing the "babbet" a soft slippery metal lining the bearing; to heat up and, weld it's self to the crankshaft or. piston rod