Just for future, that's why you do the wet and dry test.
If the oil in the cylinder raises the pressure back up to where it should be,then you know it is a ring/cylinder wall problem.
If it doesn't, then your dealing with head gasket or valves. To determine that, do cylinder leak down or pull rocker arms and check again. Which have to come off anyways no matter what the problem is the far into an engine.
A lot of people decide to "save time "and just yank the engine out and apart. When you know you're going to be putting in all new parts regardless, then it does save time. When you were salvaging as much as possible, or trying to save money, diagnostic time will replace later guesswork almost every time.