Update:
After removing the head, it appears that nothing is broken or bent! I will link a Google Drive link at the bottom of this post with images of my findings.
What I found was a good amount of gunk that was carbon-y crap built up that physically prevented the piston in cylinder 1 from completing a full rotation. After head removal, the bottom end moves freely with no issues. The valves in the head appear to be fine and all still move, so I don't think there was any catastrophic failure of two objects trying to occupy the same space at the same time.
It appears that the head gasket was blown around cylinder 1, was leaking, and then perhaps the car sat for a time and the gunk built up to that point. I'm not sure, but I know that the cooling system is in terrible condition. What it seems to me is that nobody ever used distilled water in the system and the deposits and gunk inside show that. My prediction, and it is only that, is that over time the gunk buildup made the engine run hotter than it should, popped the head gasket, the person parked it, and just left that information out when I bought it. It would definitely explain why they sold it to me for such a low price. What could have also happened is perhaps a heat exchanger in the WVO system leaked some crap into the cooling system and caused the issues. Either way, I don't see any signs of anything that can't be saved, so I'm a bit relieved. The bore on the cylinders are not scored, so that's good.
My plan is to go through this thing while I have it all apart and put it back together properly and with as many upgrades in terms of reliability as I can. I'm not looking to find performance gains and make tons of power or anything, I knew what these engines were capable of when I bought it and I'm not crazy. I know they're pretty bulletproof and reliable as long as they're treated well, and that's what I'd like to do. I plan on completely replacing every part of the cooling system and flushing everything thoroughly. While I have it all apart, what else should I do? I don't know if the injection pump leaks, but I don't know if I should mess with it before seeing if it does or not. I have a friend that is excellent at doing head work, and I plan on having him look at the head, cleaning it up, and making sure it's flowing as best as it can before I go putting it back on. I also have another friend that has a short block in case I need it, so that's great.
I also do plan on trying a WVO system again some day. I have a friend that owns a restaurant that said that I could take some waste oil once a week, and I think that would be pretty neat. I have lots of friends, which is helpful.
I look forward to responses, once again appreciate everything that any contributors have said thus far, and if I am incorrect in my plan or should do things differently, please let me know. Thank you all!
https://drive.google.com/drive/folders/1Ov7h4FqBKjtB_mPMnzr1qOJV4M_LhD9j?usp=sharing