So here is a picture that found on the internet. You can see the same whole except its cleaned up. I also contacted the seller and he took pictures of two different Mopar engines he owns and they both looked like mine. He said that most poeple just clean it up with a grinder. Apparently it supposed to help with oil distribution.
Yup, that's what it is for. The factory never really cleaned those holes up, so it's looks like a damaged block, but it's not.
