Yeah anything that has oil passing through it will get replaced. Oil lines, oil cooler etc...As short lived at that was, it looks like poor preparation during pre-assembly, that is signs of dirt in the cylinder or on the piston that didn't get properly cleaned, those vertical streaks look like something was broaching the cylinder wall. those 2 oval spots about a 1/3 of the way down the cylinder look like a distortion created tight spot. That motor would need the cases split and everything cleaned and all bearings and seals replaced before being used again. Hopefully they will save you time by replacing the whole engine. What does the combustion chamber look like? Does it show signs of metal bouncing around?
Combustion chamber looks ok, but heads will be replaced. New short block (for the second time) + new 131 kit (for the third time) + push rods, lifters, oil pump etc.
It will have more money in motor replacements & labor than what I paid for the bike.