Can you lay your hands on a borescope? You know, the viewers that have a flexible cable that you insert, with usually a screen on the handle to see what the end sees? If you can, I'd do so and have a gander at what the inside of those cylinders look like before you get into tearing the engine out. CP's right that such a big difference -wet versus dry doesn't bode well for the ring seal. As for the oil, just leave it alone, it'll leak down by itself eventually. Also, when a professional (allegedly) machine shop throws up their hands and says come and get it, that's a huge flag. I'd save everything to do with this engine (bills, email, phone records, etc.) and the shop and you may wish to consult an attorney regarding what may be substandard work here.