Damage in Block at Distributor Mount, Suggestions?

There is a distributor o ring seal for later model la motors. It used the typical o ring on the collar but a thin flat washer like gasket that lifted up the distributor the thickness of the gasket. Kind of like a transmission fiber washer between the sun gear and drum. I’ve seen it on a few engines like a van or HD truck 318. Sorry I cannot offer more help. good luck but honestly your issue is not a real problem as there is very little pressure at that point if you have a good pcv system.