Coolant in cylinder 8 on 318

Trying to help my sister get her 67 Barracuda back on the road. She bought a crate 318 during COVID. I finally got the opportunity to put it in the car for her over the winter. Got all the way to filling fluids, priming oil, and getting ready to install the intermediate shaft and distributor. Turned the engine over very briefly without spark plugs and see coolant coming out of spark plug hole for cylinder 8. This is a long block that was fully assembled, and supposedly bench tested. Pull the intake thinking maybe something is leaking there. Seemed unlikely but obvious place to start. Nothing. Gaskets and silicone around water jackets look well sealed. What else could it be? Head gasket?

Bit the bullet and pull the head, and nothing visibly obvious there. I am stumped. Has anyone ever seen coolant in one cylinder like that? No idea how coolant is getting pulled into that cylinder.

Edited: Obviously one of the things I instantly thought of was a cracked block. But this engine has new sleeves, so I don't think that is even a possibility.

20201210_124749.jpg