Final engine post mortem:
The engine was ok untill it was last majorly overheated.
When it was overheated, it blew the head gasket at the outside edge of #8 to the water jacket.
When it was parked immediately after overheating, some coolant entered the #8 bore.
After that point it was towed and not driven for a period of time.
That coolant actually caused the carbon between the rings to swell, and it also caused some rust on the top and 2nd rings.
That caused the rings to sieze in a fully compressed cold condition.
Next time it was driven, the rings did not seal properly, causing hot blow by at the top of the piston crown, under the sprak plug and flame front.
That further weakened the piston, causing the two lands to fracture.
That led (mercifully lol) to a loss of compression that was sufficient to keep the cylinder from firing any longer.
CEL - #8 misfire!
So, in the end I can't fault this engine design at all (aside from the old timing tensioner design, this engine has been upgraded).
In fact I have to praise it.
The cylinder bores are ALL 0.002" over 86mm.
Top.
Bottom.
Below the wear line in the bore.
Above the top compression ring wear.
0 and 90 deg to the crank.
EVERYWHERE.
So much for 'NIKASIL = BAD"
The pistons (so far) exhibit 0.0005 to 0.001 overall wear.
186k miles.
Amazing.
A little bit of service and this car would have lasted MUCH MUCH longer.
But that's ok, this is how I get to enjoy them, lol.
It will live again.