Thanks everyone for your help.
I went down to card the frame and slide very excited to see the finish.
I carded the frame and found more blotches. Very much a pattern as well.
I found my source of contamination! It's my gloves. The very thing I'm using to protect against oil likely has some sort of oil on it.
I remember washing my hands before heading to my basement. I remember consciously grabbing gloves near the cuffed portion and not near the fingers. I grabbed the carding brush and started.
You can see the matching pattern on the bluing.
I then tried washing the gloves off in acetone and I saw streaks of oil rising to the surface.
The reason why this didn't happen earlier today was that I carded and was diligent in not touching the frame whatsoever. I held it with the wire hangers and not the frame itself.
So now the frame sits in acetone. I hope it reverses the oil blotches. If not, I'll likely have to scotch Brite it again and rust it again.
Looks like I need to buy new gloves. (or I contaminated it some other way that is unknown to me)



