Not sure about the climate control, I know that the 850 series does not have the best climate control system in the world, could it be the matrix unit that was leaking and the previous owner has bypassed it?
How many miles has the car done? If the car had only done short journeys before your ownership then it is possible that condensation would have built up in the engine oil that when you gave it a decent drive it would appear that it is using oil. Do the plugs look ok?
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