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Found out what's wrong. That dowel is supposed to stick out. There are four of them and they're used to correctly position the intake and exhaust valleys. The issue is the threads in the head were stripped. When I pulled out the stud yesterday, I never wiped the oil off to get a better look. Today I took the stud off, wiped the oil off, and examined it. The threads from the head were stripped off and were still on the stud. So it looks like I'll be using timeserts.
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