Oh NO!! not another small block build

Great thread, Rani.
I always take it with a grain of salt when someone says anything is ''rebuilt'', especially engines.
You definitely made the right call by opening it up and seeing what it was like inside.
What's the plan for the rest of the build?
Of course measuring everything is in order and go from there, but now would be a good time to put in some higher compression pistons with an overbore if you aren't totally budget poor.
At a minimum, you are looking at rings, rod, main, and cam bearings, timing chain, gaskets, frost plugs, an oil pump, a good clean up, and deglazing the cylinders with a dingle ball hone.
What i think happened here was a person changed what was obviously wrong and did a valve grind and a cam change and slapped it back together calling it rebuilt.
When you get it back together, at least you'll know what you have.
Good luck, and i'm looking forward to future posts!