QUOTE(rjames @ Aug 27 2020, 05:05 AM)

Make sure your setting the gap for the hydraulic lifters correctly as the spec is different from solid lifters.

I understand the setting gap is minimal as long as the pushrods turn ?,issue with hyd lifters is up to a point they will tolerate a lack of or low oil pressure to them then when oil is cold ,they will fail and this can happen more often when an owner just drove off without warming the engine or did few oil services.
We need to remember the T4 914 motor was never designed for hyd lifters,believe VW bought them in on the 79 bus engine and then on the T3 until early in 1980's,then with the watercooled 1.9 ,they did change oil galleries to compensate but lack of oil services as mentioned is the most common issue.
My best advise is to do a couple of oil services with a budget dino 20/50,worked for me with mk2/3 VW Golfs 70% of the time…don't use ATF or lifter flush makes it worse or no result in that order.
Rant over ,good luck to the OP.