Usually the crank housing bore has material removed from the cap and block, but the amount is small (.001") which is a non-issue in regards to the oil pump. They must have over cut the caps which requires align boring, then honing and they tried to do it all by honing. Align boring is selective and honing is not. Its all a pain in the ass to do it correctly. When I install studs I measure the housing bores and if their only out a few tenths I run it. If their out more I just swish it with the hone. There are tricks to do it correctly but its a dying art.

kinda looks like it ate metal chunks, was there stuff on the oil pickup tube filter?

there where no metal chunks in front of the gears. not in the drained oil neather in the pickup tube.

Any chance you put thicker gears in a thinner housing? Or was this purchased as a complete unit?

it was a complete unit. didnt pull it apart before assembly.

With a new pump you can turn the gear rotors by hand to make sure the there is enough side clearance. I lube them up with a few drops of assembly lube which not only gives it some initial lube but also helps it pull oil quicker by improving sealing. If the engine was assembled within a months of start up I would not crank for oil pressure there should be plenty of residual assembly lube. If your concerned about minimizing the initial no oil pressure time on the first start up you can use thinner oil for startup 5-30 or warm the oil before filling. I always add the oil just before the startup.

I just pulled the information sheets that came with the last pump that I installed and it does list the side clearance in the inspection report. Also it lists that pump is pre-lubricated. Did the gear rotors have oil on them? Did it ever make oil pressure? The pictures look as if it ran dry for an extended period.

The pump was prelubed and made pressure for 5 second before it seized

Any info on how this turned out, kind of heart breaking to start that way, does the crank turn freely with the oil pump off?