383 Help

Hey all, taking apart my first engine and it's a 68 383 that will go in my barracuda. Everything looks good on it and it's bored .030 over but when I was taking it apart I found this at the front of the block behind where the distributor goes into the block and it leads into the timing belt cavity. I'm worried that this is damage, not factory and I just bought the engine so I'm really hoping that's not the case. Is this something from the factory or damage. If it's damaged, what could have caused it and is the engine still fine to run with it like this? Any help is appreciated. Thanks.

IMG_4313.JPG