Also if the deck was cut a fair bit your locating dowels
might be bottomed out in the heads holding them up
a small amount

All good advice here, I would make a list and go from easy to hard

Is possible the water is coming up around a head-bolt?

The deck was cut .065, which seems like a lot to me. How high does the dowel pin usually go into the head? And how deep is the hole in the head that the pin goes into?

As for water coming up around a head bolt, it could be possible but I don't know yet.

Another possibility is when the machine shop cut .035 out of my chambers in the quench area it could have caused a water leak.

Which machine shop did you use and where?