I removed a lot of core sand in my LC2 block tucked in above the rear main saddle after it had run 30k. There were no issues, I started taking it apart to start making power. Your cylinder bores show 2 different gowges, both from sand and metal. The sand gowges are wider and deeper than the metal. Cylinder blocks from the 80's sometimes had large amounts of core sand left in them. Is the rust in the bore wall picture from the use of alcohol? Sometimes the sand let go and other times it hung around for a long time. The sand was loosened up and not discovered, got into the oil system, partially impeded the oil flow, your oil wedge was reduced (as shown by your bearing surfaces). I spent many hours removing core sand from my LC2 block which was sonniced (for bore wall thickness), magnfluxed and certain dimensions were verified before it was ever used in an engine build. This was a virgin block. Casting removal processes have gotten much better over the years. At factory 36 in Flint Michigan (home of the LC2) the cores were put into a rack and vibrated at various frequencies, then blown out with high pressure oil/air and washed. Sometimes the core sand still remained.