water in oil after heads swapped

Looking for some info from those who have been there/done that. The issue is an 1989 318, 110k miles, with water in the oil after head swap. Started out as a blown head gasket from #7 hole that turned out to have a stuck closed intake valve and bent pushrod. Because of compression check done when truck was purchased, I know the valve was already stuck. Truck was driven about 400miles with no issues other than dead hole miss about a week earlier. The day before the blown head gasket I noticed the water was a little low and I added less than a half gallon, I thought that was odd. The next day I drove the truck, towing another car, about a mile and lost the head gasket on #7 hole. No big deal. I let it cool for an hour and drove it back the mile without the towed vehicle, coasting with engine off a third of the way. I don't believe I got it excessively hot doing that. Pulled the head (302's), found the stuck valve with cracked seat and planned to put a new head on it. Was talked into pulling other head and found cracked exhaust seat on #4, no other cracks anywhere. Replaced both heads with Victor gasket set 95-1072vr which says up to 1988. (Did not notice that earlier but can't imagine that being a problem.) Cleaned deck, did not notice anything unusual, torqued new heads, (302's), to 95lbs sequentially with 4 passes. End result, water in oil. Pulled intake and resealed, just in case, but nothing looked abnormal. With fresh oil and no water, engine runs absolutely dead smooth. (No I don't let it get hot.) When doing the swap, I took off A/C bracket and smog pump bracket which would remove tension from timing cover but I've done that before with no issues. The water is going into crankcase in less than a minute when the radiator is filled so it is a sizable leak. I realize I could have a cracked block but I've seen cast iron block/head engines run so hot they died and still run fine after they cooled down. Sometimes they smoked from cooked rings but they held water. 318's are not know to crack so I am wondering if there is anything about head gasket interchangeability between early and later heads. I'm at a loss since there was nothing extraordinary about the scenario as it played out. Should have been a simple head and gasket swap, but I've got a massive water in the oil situation. Anyone ever had this happen to them? Thanks for any comments.