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.
Well guys its been a slow and brutal process, but soon to be done again. Its hard to spend money on the car, which has slowed the process even more. I decided to just update a few things due to the amount of money it was going to take to get the short block back up to snuff, considered a few different intake options and ended up just updating the Tpi setup with a Big mouth TPIS intake and Slp siamesed runners. I ported the heck out of both shortening the runners about 3" and porting the intake to a Felpro 1206. Then I had to file the plenum to match the runner surfaces and blend together. Brushed the runners and chevrolet lettering on the valve covers and then clear powder coated everything. also made a new throttle body cover to clean it up to blend with the plenum. The short block required a new block, new pistons and few new items total of about 2500 bucks in parts. We splayed the block and studed the heads this time and also went with cometic head gaskets.