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Oops, big time. Hoping they will stand behind this

Yes, unfortunately, you are still on on the labor.

Looks like not too many milrs. Some burning concentrated on the edge of the valve. Curiuos as to failure mode?
Improper machining tolerences, or failure of componet?

A really, really big exhaust valve? That looks quite strange to me... Usually the inlets are much larger, and it's more common for the inlets to drop in my experience...

--DD