There is water in the oil, what is wrong?

Hello, If there is no compression, plus water in the cylinders, you likely have a bad head gasket, cylinder head, or block. If this is a turbo engine, coolant and oil run through the turbo. Either way, no compression, pull the cylinder head and inspect. The 2.0T and 3.0T both run enough compression and forced air to blow a hole in the EXTREMELY THIN head gasket between the cylinder bores.