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Looks like the lifters didn't rotate .If the lifter is stuck in one position the cam will grind it off. In the picture ,is that rust on the lifter?



No rust. That's chewed up metal from galling. If you look at the one on the right the lifter was already galled pretty good but only had slight wear on the face indicating the galling happened first and prevented it from spinning. Then it started eating the lobe. That's why I'm thinking it was a lifter oiling problem