I think I threw a "Compression test" recommendation also. Who knows how they troubleshot it. But I agree, pulling an engine gets costly without some pinpoint testing first.
Sure, and if the engine sat for a bunch of years it would be a good possibility that a valve stuck open, piston ran into it, and it could be either bent or broken causing the engine to bind when the piston runs back into it.
If it was mine I would be at least pulling the valve cover off for inspection before looking for another engine.
