All cylinders filling with water

This is not my best area I admitt but I am thinking there is a crack on one of the intake ports on one of the heads. When that valve is closed it could be sucking water across the intake resulting in water in all 8 cylinders.

Still doesn't explain how all 8 got filled.

I have some Stock J heads $150/pr. Need a complete going through and 1 exhaust valve at a minimum.

You have a bore scope you can run down the intakes to look if it's coming from the port(s)? Maybe a HF quick rental... :)

Take a scribe and see if you can move any of the top row head stud washers.

See my quote above, it is the only way that it could happen as far as I know. If that valve was closed when the engine was filled with water or shut down then it could have backflowed through the intake.