Oh NO!! not another small block build

good call on pulling that 'rebuilt' engine apart. Anybody who knows a whit about rebuilding an engine, doesn't dole out the silicone rubber with a trowel. The reason that cam bearing babbit material flaked off the shell is probably because of running and sitting idle with very, very dirty, contaminated oil for long periods of time. The contaminants in the oil form acids which eat at the soft bearing material.