Pieces of steel in cylinder??

First thing...get those heads to a good machine shop. See what you have to work with.

IF you have the cash rebuild the short block. If it were me I'd repair those heads and drive it. Might have a bit of blue smoke...maybe not. Drive the car and enjoy it for a year or so.

I bought an F1 Ford pickup 15 years ago. Had a '55 Buick engine that was seized.
Pulled one head and found a broken valve imbedded in the piston and jammed into the head.

I had a head in stock, had Egge build one piston for me and I screwed it back together. That truck still runs today...I see the owner at a few car shows every year. Never did anymore to the engine other than oil changes.

Cars are like women...they don't have to be perfect to be fun.