I am no expert by any stretch, and the fact that I can see damage to the tray from rod impact should make it clear that it's not a case of "product failure". As for the pistons, I had a small block done for me several years ago that was also over bored to .034, not .030. When it was torn down my slugs had the same kind of markings on the skirts. I had shown a few of them to other machine shops and asked what causes that, they all told me it was from rocking in the bore. Again, not product failure. This guy shouldn't be allowed to own tools.
Best of luck getting it resolved.
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