MY son had same problem with # 3 with Y2K 5.3 with GM hot cam, looked like the same picture but more wear, the roller was worn completly flat. How ever the 5.3/hot cam ran perfect to 314000 HARD miles, the balance of the engine looked very good , no lip in top of cylender, does not use 1/2 quart oil ( casteroil syn ) in each changing/ 5 k miles, we install the OE cam with one new roller lifter ( had 30 k on it ) from my 5.7 and the 5.3 runs/sounds great, how ever my grand dauther just bought a new charger/hermi I will pass the warning on to her
Johnny