I agree tim, this motor is a worst case deal from the gitgo! But that doesn't help ya right now.
I'd not trust the rocker assembly whatsoever! I'd definitely disassemble and verify what "xxx" told ya! It's too simple not to check and verify.
So do you think the rocker shafts "might" have been purged from the original head build? Or after it was ripped into the second time? "cam bearing" material in the rockers is not hardly likely, the pieces would be way too big, tiny particles are not the failure mode of the babbitt material! But accumulated years of sludging is what gets 'em.
But again, ya gotta verify if a valve(s) are stuck/sticking while watching the motor run (and oil). If all of a sudden the vacuum has gone wackeee, then something is wrong and the trickledown is still taking place!
I'd not pull the heads or motor until ya watch the lube system! Otherwise you will never be able to get to root cause of this poor performance, all areas need to be diagnosed! And if "top end lubrication" does show to be faulty, then I see total reimbursement of this whole deal by "xxx". So video the oiling (or non-oiling) of the top end so your attorney can have sumthin' ta play with.
As the motor is now running...ya need to do and video the following:
1) oil pressure cold right off the first tap in the gallery.
2) oil pressure hot at the same point.
3) hot compression (just like when the motor is running).
4) hot leakdown.
5) rocker assembly lubrication including oil drool to the valve tips and the pushrods.
6) cam lobe condition as measured at the rocker with a dial indicator (nothing fancy, just looking for an abnormal lobe or three).
7) video of the vacuum gauge face while the motor is running and verifying that timing and carb idle mixture are ok and no potential vacuum leak noted; also include some notation of the altitude where this data is being recorded.
You already have the pics of the cam gear alignment, that's additional "proof" to use in documentation.