Thanks PJ and 1971. Since the hone was wore down, it's hard to tell if the rings weren't right for the hone. I do need to ask the machinist if the oil was diluted w/fuel.
I'm still not clear on if it was fuel wash... I understand that it could have diluted the oil and led to worn oil and middle rings, but I would expect the top rings to have been worn too. But maybe it was a mis-matched ring issue more-so than fuel wash, and the middle and oil rings weren't right for the hone.