Jonzarno Your photograph shows what appears to oil residue around the cowling where the prop boss is meant to be, and that it was blowing back along the fuse.
It seems to me quite possible that it would have - or did - have an impact on forward visibility through the screen? I should think this a factor in the decision to operate the 'chute - after all if you can't see where you're going, or you suspect that's going to get a whole lot worse, then it certainly won't assist in a 'normal' field landing.
Quite apart from that I wonder if you had a close look at the pointy end of the engine? Would be interested to know if you have any initial indication as to what let go.
FP.