I sleeve blocks with that type damage. Nohing out of the ordinary.
As previously stated. Cost can be a major factor. Block will usually have to be completely over bored because of press fit distortion of adjacent cylinders. Cleaning, Cam bearings/s plugs removed for complete machining chip removal . Figure= Labor
Remove cam bearings/soft plugs, clean block.
Install cam bear/soft plugs.
cam bearings/soft plugs.