This is definitely a “Franken-engine”! I bought the short block for $200, because I needed 1 piston for another project. Later, I bought a complete set of pistons from a guy in an Autozone parking lot for $80. Then I bought a complete LS6 engine for $500, that had a “slight” bottom end noise. That noise turned out to be two broken connecting rods and a piston jammed at a 45degree angle in the bore. But it did provide a good set of heads. I had the heads redone, the crank and connecting rods just needed fresh bearings, assembled everything and it sounded great. Unfortunately I never ran it long enough to detect the oil issue until I put the body on the chassis, and could drive it around.
Now that I’m trying to do the detective work to see where my mass of junk parts went wrong, I vaguely remember the guy that I bought the block from telling me that it had a spun bearing! I took that to mean crank bearing, but when I took the crank to have it redone my machinist assured me that it was fine. The previous owner must have meant cam bearing, but i never made that connection and on visual inspection they looked good.