Bottom of lifter worn thru

The videos I have on You Tube are not cam break ins... just running the engine on the stand. So I'd think a general assumption is just that.
I agree 100% that most guys do not understand what happens or how it happens when a cam breaks in, or what steps should be taken from basic assembly to "turning the key". The issues with cams are not manufacturer, not oil, not anything but builder error as far as I'm concerned. Because even if the materials you work with change, it's ultimately the builder's responsibility to make what's available work for the customer.

to the OP - yes - you need to replace the cam and lifters and you should pull the engine and check for damage to the cylinder bores and bearings because that's where all that powdered hardened steel went.