Took it to the shop after I picked it up to have a normal tune up done to it and to get new belts, had some leaky valve covers, so I asked them to put some new gaskets on it, below is a picture of what they found, and the reason for the current engine swap.
The packed oil in the heads feels like hard dirt when you touch/poke, mechanic told me the oil hadn't been changed in possibly years, previous owner just kept dumping it in.