Assuming the notch in the cylinder is the only block damage.......sleeve that hole, get a rod and piston.....fix crank and carry on. If the crank is standard now, grind it .010 and get some more clearance
If the crank is std grind it .011 U.S. and get some more clearance.
I agree with streetwise, the stacked size variances got this engine. The thickest bearing wound up in the smallest rod on the largest journal on the crank.
