Little update on this m54b30 swap. The replacement engine is back in the car but waiting on some parts before finishing it up. Mostly has to do with the oxygen sensors being different due to production years of the vehicle
Also I tore down the m54b25 and my diagnosis was correct. The exhaust valve on cylinder 4 has a chunk missing which indicates a burnt valve. Plus there is somewhat excessive carbon build up on all the valves
This mostly could have been prevented with better fuel or an injector cleaner in the tank with oil changes.