Yes lifter rotation was checked with no load and WD40 then double checked with checking springs and a coat of Gibbs oil. I also miked the bores being a new Mopar block and all were within spec. Admittedly I didn't have the machine shop check lifter off set nor angles on their new Rottler. LA have around 0.015 - 0.020 offset usually, so visually they appeared right. I'm now wondering if the cam may not have had enough taper or was it ground with an LA style dual taper on the lobes? The lifters check out perfect considering the damage on the lobes.
Maybe time to have them check the lifter bores and possibly bush them. This kind of operation over here can hit the $1300-$1500 Australian dollar mark!
Is there any way of checking lifter bore alignment with hand tools and not on a fixture?