It gets worse... I pulled the lifters and found "crud" in the grooves, then looking at the block with a flashlight, I can see a bunch of rusty crud in the oil passages.. Looks like someone didn't clean the block good enough after bore and hone or not at all. So the block is heading to the machine shop to join the heads. Also looks like some of the valves kissed the piston so that'll get addressed as well. Complete rebuild. Hopefully we can use the crank, rods, pistons, cam & lifters. Just disassemble, clean and reassemble with proper clearances this time. Then a good engine dyno session to dyno tune it.