Were different gears installed since the block was align honed? To me this looks like the wrong gears were used since the block was align honed. When you do this, you bring the crank closer to the cam, and reduce the gear lash in the gears. If you use stock gears, you lose all your gear lash, and as soon as it gets hot, the softest gear gets chewed. Once it starts, it rapidly chews up until it takes all the teeth out. I know I've seen blocks get junked before after having machine work done because they couldn't get undersized gears/chains to obtain the correct chain tension or gear lash, so you have to get another block to get your clearances correct. Even a few thousandths of change can make a big difference in gear lash.