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The plasma coating on the cylinder liner likely got worn due to excessive fuel washing. Once the coating goes, compression is lost. There's no fix either as the block is completely toast.
With respect to upgrading to the newer B58, with amount of time and effort to make the swap work with the DME would be a nightmare and I doubt there is a shop with the capability to do it.
It will be about $2500-3000 to swap in a new motor and code the DME.
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