I believe you hit the nail on the head so to speak. Headgasket had stretched to an oval egg shaped on the #1, #2 and #5 cylinder towards the intake valve ports which leads me to believe they didn't torque it down well enough or reused my head bolts. Plus the dealership only did the top half of the engine and left the block alone and it cost me $3600 only to have the engine last 4,000 miles.
The dealership honored the service warranty on the engine so to speak and gave me a set of used cams and a used head. But I wound up paying more to have them machine the block and had them install ARP headstuds and a HKS metal headgasket but because I had them install aftermarket stuff they wouldn't stand behind any of the work. This engine ran OK for 50,000 miles before I started having issues again with it. It was running when I took it down to rebuild the motor. I had turbo whine so I removed the turbo and was going to have it rebuilt and while it was off I figure I would check the compression. That is when I discovered the #3 and #4 cylinder compression were low. #3 had about 90 # psig and #4 had about 70# psig. So at that point I decided to yank it and go through rebuilding it. As I tore it down my mechanic friend noticed it didn't have the oil squirters, seems the dealer didn't install them when they rebuilt it the second time.
Machine shop took 8 months to get everything machined and back in my possession and the rest of the time in 2 and 1/2 years has been my mechanic friend taking all the time in the world to recouping from health issues/ 3 surgeries within 6 months and his medication and trying to regain his stamina, I have had to be patient while he got back on his feet. Luckily I have other cars to rely on so getting this done hasn't been that much of an inconvenience. All I know is I didn't want the dealership rebuilding any more of my engines!!!