I know a lot about engines and this is one of those engines that is nothing but bad, wrong and no good. 2 pistons have holes, head gasket had failed in the #2 cylinder. Piston is rusted in there like metal in the salt belt.
No saving this one, off to the wrecking yard for another 2M or 4M.
So the fan clutch still turns and so does the alternator. Engine sure won't turn no matter what but the head seems to be in great shape, no noticeable wear on the cams.
We'll see what the machine shop says.