the diesel engine on gen 1 cars is a toyota engine they do suffer from head gaskets with age and dont take much to leak in such a way that only on full loads ie when on road and under full pressure when they do this in early stages 1 drip every 1 second would not be seen out the exhaust it was turn to light steam as such,,
this all said gasket/head repair would prob be more than car is worth, not saying this is a corrcet way to repair such a issue but i have used a few times on cars that owners did not want to spend the money on,, below link sealant
STEEL SEAL REPAIR FIXES WARPED HEADS AND CRACKED ENGINE BLOCKS STEELSEAL ⭐ | eBay
must use gylcol anti freeze for it to work blue or green
this all said gasket/head repair would prob be more than car is worth, not saying this is a corrcet way to repair such a issue but i have used a few times on cars that owners did not want to spend the money on,, below link sealant
STEEL SEAL REPAIR FIXES WARPED HEADS AND CRACKED ENGINE BLOCKS STEELSEAL ⭐ | eBay
must use gylcol anti freeze for it to work blue or green