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We measured the covariance matrix of the fields generated in an integrated third-order optical parametric oscillator operating above threshold. We observed up to (2.3 ± 0.3) dB of squeezing in amplitude difference and inferred (4.9 ± 0.7) dB of on-chip squeezing, while an excess of noise for the sum of conjugated quadratures hinders the entanglement. The degradation of amplitude correlations and state purity for increasing the pump power is consistent with the observed growth of the phase noise of the fields, showing the necessity of strategies for phase noise control aiming at entanglement generation in these systems.more » « lessFree, publicly-accessible full text available June 1, 2025