RE: Piston Damage
I think if you have damage in the conrod and in the cranckase it must have been an Foreign object that come through the carb or come loos from the bearings...and the particle followed the gasses stream. I think a particle generated inside the comustion chamber would rather go through the exhaust port than through the admission ports. So the engine must have ingested it...
Have you checked the carb for missing parts?