Since you have the engine out put it on a stand and take the oil pan off to take a look inside those lifters don’t look too bad and should clean up .the crimped rocker tube may indicate some issue but check to see if they are the correct rockers for the early engine I remember there being a center oil grove and a offset oil grove on the rocker depending on the year of engine.The 54 engine had a slit in the valve cover right below the vent drain so that is we’re the water most likely came from.
Last edited by KEVINSKI; 09/27/20261:24 AM. Reason: Correction