Am I ok with this? KB107 in La block

Lots of band aids offered here. That engine would get nothing short of having everything checked and measured by a competent machine shop. Crank index, rod lengths, block deck, all of it. It already is an expensive proposition "throwing" it together like it is. Might as well make sure it's right.

To be fair, maybe at the time the machine shop felt that square-decking wasn't worth the expense based on the intended usage. OR they don't have as much experience with Mopars which are a lot worse with variations in deck heights than Chevy and Ford stuff. When I took my 440 block to be machined I mentioned square-decking and the shop owner said he could do it but it would cost a lot more and not really be worth it; at the time I intended to build it up for my D200 pickup with only ~9:1 compression to tow my Duster around and be safe on regular gas.