It looks to me like you have a couple of different things that went awry with this one. The pin walked out of the rod because it didn't have the right pressed fit when the pistons were installed. The KBs were probably not installed perfectly(apparently they need to be installed per detailed instructions to live, not something a normal shop is going to do unless they have dealt with it before). And the cam and lifters didn't break-in properly and therefore were going south in very short order(some don't even make it thru the break-in process these days). Simply speaking it's pretty much a total loss. I'd start all over again with new parts from different suppliers and never look back and not try to reuse any of the old internals. I'd even have the heads pulled apart and checked and cleaned before I'd try to put them back into service again.