Engine is pulled - 273 rebuild or replacement 360 crate?

No insult taken. I’m here to learn. What machining needs to be done? My engine guys mentioned something but it didn’t pick up on it.
360 main journals are bigger than 318, so you'll need to cut those down (and ideally heat treat the crank after, or not). you'll also need to trim some of the counterweights to clear the pistons-- which will need to be custom. though you can run stock low compression 318 pistons they'll wind up something like .06 above the deck.

seems like your engine guy is dead set on building some weirdo combo just cause.

the stock 360 mag will make 400hp practically falling out of bed and take *zero* custom parts or exotic machining.