It appears the use of sealant on the head bolt threads was way overdone and migrated between the gasket and block/head, preventing the gasket from sealing flat and tight. May not be the cause of the gasket burning out between the cylinders, but it should still be avoided when reassembled.
Could be the gasket itself was inferior for the task. What compression is it built to ?
The scoring in #4 needs to be addressed as well. Possibly the missing piece of the fire ring wedged between the piston and cylinder wall..
Sorry to see these issues you're dealing with.
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Mitch
1970 Chevelle SS
1966 Chevelle SS
1967 Camaro ss/rs
1938 Business coupe, street rod
2000 FXSTS, original owner, 13k miles
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