No expert in diesels myself but the report sounds like wear from dry starts and fuel getting into the oil.
I just lost a gasser 5.7 with only 450 hours at 19 years old that I suspect suffered the same as it had 163 hours when I bought it at 11 years old. I got 8 good years out before it started knocking.
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1997 Silverton 362, 7.4 Crusaders
1997 2400 SCR, 5.7 Vortec / Bravo 2
Mike
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