Healthy Head?

So Ima guessing you didn't do a cooling system pressure test, nor a compression test, nor a leakdown test .
In which case, I for one can't help you.
At this point, I think you kindof shot yourself in the foot. IDK how you can pressure-test the block, in-frame. Send the head out for a pressure test but if it come back A-ok, Ima guessing the engine will need to come out for further testing.
The two bent pushrods are pointing to valves stuck in the guides, so the head is gonna need work ..... if it passes the pressure test.

I hope you are aware that the products of combustion are energy and water, so under certain circumstances, seeing steam, white-smoke, or even water dripping out of the tail pipe is normal.