The sleeve is a totally moot point here. Yall don't seem to get that. THE BLOCK is where the problem lies. Sure, he can have the sleeve removed. Probably see the damaged area of the block a little better. But I think it's obvious the block has split from the original bore in that area. THAT is the issue. And quite obviously the block is not solid there, if that's where coolant is getting in.
Perhaps the block is SUPPOSED to be solid there, but we all know because of differences in castings, each block is not the same. Can you say core shift?
To the OP, I can tell you Reeves did not install that sleeve. They may have well missed that it had a sleeve, but that's not how Steve did his work. I hated that they have gone out, because as of yet, I have not found another local machine shop that I trust and that's reasonable enough to use.
IMO from what I can tell by the pictures, you probably need another block.
About Wheelers........I have ever in my life heard anything good about them. This is both before they went out of business and after they reopened. They were in business in Macon for a LONG time.....like back in the 40s. Then "sometime" in the late 80s maybe, they went out. Now they are back.
All that said, I used them firly recently to pressure test a cylinder head I had questions about. They did a good job. Showed me the head was good. I may use them again, because my direct experience tells me differently than what I have heard......but I have heard bad things a LOT about them.
I do remember when they were open the last time.......and I was working as an alignment tech at a local tire chain, the owner was there getting tires on his personal truck. He remembered me from working at a local machine shop when I was a kid. Offered me a job. Said he'd pay me 350 a week. I was making over 1K a week as an alignment tech. I just smiled and walked away. lol