GM has spec on how long the cracks can be on precups and still be serviceable. Your budget... I run cracked stuff and win carnage threads. Precups are the least of my concerns. I won't run a cracked head, but, will run a cracked block...
IMO the light brown is like a spark plug tip - got hot from lack of coolant flow on that head due to popped gasket. Carefully check that head for cracks.
Shameless plug for site vendor
@Burning oil who makes an
aftermarket oil cooler hose kit. GM's hoses can't handle the temperatures and the hose gets hard then leaks or comes apart at the crimp. Leroy Diesel's stuff held up when I was ruining engine oil, due to temps, on one of the hot rods I built.
Don't forget to clean out behind the oil cooler.