5.9 Magnum Cylinder Heads

What is the head and seat issue? I haven't heard this before

I am guessing Abodybomber explained the seat/head cracking issue with the OEM heads and after cleaning and closely inspecting the heads that came with my 5.9 they are indeed cracked.
Although apparently a lot of them crack and don't have a problem because of it I have another issue with these specific heads I have never seen before.
I looked them over a little when I disassembled the motor and they looked ok with just a quick visual, I then disassembled them to do a lap on the valves and replace the stem seals.
All the intake valves are in nice condition and a light lapping cleaned the surfaces right up, but every single exhaust valve and matching seats are egg shaped.
At one single place in the rotation of the valve in the seat it seals, but rotate the valve at all, any amount in any direction and you can clearing see it isn't closing.

WTH? :D
I always thought valves rotated while the engine was running (even if just a little) but I don't see how this engine could have run like the deposits indicated it was.
All the valves were a nice even color throughout the cylinders, as were the pistons, exhaust ports and insides of the head chambers.
The only way I see this thing could have run was if the valves always settled in the same place in that egg shape.

I decided to put it on hold until I can get a set of EQ's
My 318 has been a damn good motor, especially since it's the same motor I bought the car with and I have never done anything to it internally.
After driving the heck out of it for 3 years now it's starting to smoke just a little at stops occasionally on hot days.