This is the tale of another crappy stealership repair (X3).
Anyhow, this is the famous block that the dealer failed 2 or 3 times at a head gasket repair. In the back exhaust side corner of the block, next to the water port that is really close to the liner, it has been eaten out a good bit by rust (I have another block that looks similar, but it held up fine. common corrosion issue...). This in itself probably wouldn't have caused a failure, but I think the stealership spent a little bit too much time sanding in the corner, and the sleeve is slightly lower just in that area .08mm (.0031"). Then again, that's a pretty good hole right? I think I answered one of my own questions
Pull block, new liner (and piston?)?
On the bright side, I was about to put the head on when I decided to measure that spot with my dial indicator.
