318 timing chain.....and why the engine should come out.

The bores get egg shaped because the force of the pistons/rings is low on the front and back and high on one side of the bore, due the combustion pressure and conrod angle forcing them down along one side of the bore on the power stroke. That worn side is the major thrust side of the bore... exhaust side on even cylinder and intake side on odd cylinders. Yes, you can get blowby with worn cylinders for the reason you state. Yor can also get blowby from old rings and pistons due to the rings and ring grooves being worn; the rings are not held tightly perpendicular to the bores and 'flop'/twist up and down. That takes tension out of the rings and wears the ring faces round, and they then don't seal well.

The rings rotate simply because there is nothing to stop them from doing so and there is not need to prevent them from rotating. The recommendation to 'clock' them is something done for decades.... to prevent the gaps from lining up at start-up, I suppose, which could cause a little extra oil consumption.

Just put them back in if you are just running this to have moving power. Good to check for a broken ring if that was suspected, but I am not sure what you are focusing on anymore LOL