So I just wanted to share an update for my situation.
I scoped the cylinders with an inspection camera and discovered that the cylinder 4 piston skirt has been and is touching the cylinder wall. Wear can clearly be seen in one 3” track I believe to be on the exhaust side of the cylinder.
An engine builder commented that it’s likely that the piston ring(s) compressed and is no longer doing it’s job like it should and is allowing the piston to contact the wall.
So in short the noise we’re hearing in the video is piston slap.
I picked up a replacement K24 engine with 99,000kms. I checked compression, examined the spark plugs and scoped the cylinders before I purchased it. Everything checked out.
Going to just swap it out and do some maintenance on it before it goes in to make it easier.