Shop should not re-bore until new pistons and rings in hand so that shop can set clearances. Let shop clean and inspect engine and let them tell you what parts to order - unless they can order.
Agree your bearings look shot.
Can you see any thrust bearings? If so, please photo. I have a B16 engine that was rebuilt, but supposedly builder forgot to install thrust bearings. But I don’t know, just the story that came with the engine.
