are these issues fixable..
The second block is junk though. The machine shop should have caught that before doing all the work to it.
The very first thing a machine shop should do if they dont magnaflux it for cracks is to clean the decks, front and rear covers to remove any residual old gaskets. At this point, those cracks should have been noticed! If somehow it went unnoticed, it should have been found when the block was tanked.
Sounds to me like you should find another machine shop because this shop clearly has no attention to detail. If they can't see a small crack, don't expect them to do a thorough job of cleaning the block (or for that matter probably ever changing the fluid in the hot tank).
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