If either all the water was not removed or the engine not properly winterized with antifreeze and it was subjected to freezing temperatures, there is a chance of freeze damage to the block. Reading your post it struck me as a possibility.
If it were me I'd want to know the water jacket was intact before moving forward on a rebuild. If the assembled block and head will not hold a modest pressure you know the cooling system has suffered a mortal crack. The manifold can be tested separately which I recommend also.
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Neil
1977 Catalina 30
San Pedro, California
prior boats 1987 Westsail 32, 1970 Catalina 22
Had my hands in a few others
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