I had a recent question/experience with my m20... here's the story.
Bought non-running 90 325i with what was siad to be broken TB, after diving in, found that TB was intact, but other mayhem occurred with timing components. The head was taken to a very reputable machine shop in walnut creek. all exhaust valve replaced (bent) and new guides and seals installed. Head completely checked and given clean bill.
Meanwhile I worked on the block. This is the best one.
This is the worst one.
As you can see, these were classic "interference" issues brought to life.
I posted my images and questions on R3V and spoke to the machinist and other BMW mechanics who all said...
deburr
clean throughly
dont worry
I have been daily driving this 325/M20 for 2 weeks now. It is very solid, no issues to date, runs great, passed smog, pulls very well.
Clearly, I am not a pro mechanic, nor have I worked on more than my m42 and m20. Just thought you could use a bit of perspective on your project. Glad to hear things are looking positive for you and the m42.