For several reasons I think there is more to this than has been posted, but figuring out whats gone wrong is proving hard work because the same reply is coming back of a blinkered point that GTSchris's engine is duff and thats the end of it.
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There is more to it than that, there has to be.
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Also im talking about your previous engine because like I say small ends dont just give up the ghost, i've already stated what can score them, in a way what im trying to prevent is you having a 3rd engine installed into your car and the same happens again becuase of a lingering problem thats been transfered on each engine, eg: that turbo! I know its not old, but it needs examining properly.
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It could be blowing enough oil that was significant to lower the oil level and cause starvation problems, its Ok saying that with the standard CT26 thats now installed the engines still burning oil, but it would do wouldnt it, because there could potentially be more damage to the engine now than when the engine was shipped.
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maybe between engine installation and you initally viewing the car, the engine burnt enough oil from that hybrid turbo to create starvation>scoring problems.
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I dont really think anyone can help anymore as all the sensible suggested resolutions have been dismissed, ie: that swap of an engine from GTSchris.
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in a field where its hard to point blame at what went wrong, I think he has given you a more than fair solution to get a working engine again, obviously its gunna cost you a few hundred quid, but I dont think you are realistically going to get a better solution from court, it will also end the madness of driving around on a knowingly knocking engine creating more problems to GTSChris's CT26 turbo he put on as a replacement and to the block/pistons/crank that has monetary value to him
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you did the exchange for this new block