Uh oh, power steering bolt broke into number one cylinder?

Hi all, I recently installed a rebuilt 360 (not my build) and within half an hour of running time I have a major water leak into the oil, thick mayo..
I immediately thought of worst case scenarios and removed the short 9/16 bolt that hold the power steering bracket to the motor. Coolant came out and then I checked as follows.
I then inserted a long (12”) cable Into the hole in the hope that it would hit the wall at the end of the thread. It doesn’t....it goes all the way in and some more.
Would I be correct in thinking this is because a previous owner has sued the wrong bolt and punctured number one cylinder bore? Pretty sure I’ve read about that.

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I'd say you pretty much hit the nail on the head........your fix is to pull the engine, tear it down and sleeve the cylinder(s)