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Just replace the head gasket with some Red RTV and send it.
I thought lubed spec was lower because the lube reduces the friction in the threads and makes it easier to overtorque the fasteners.
Maybe he used in-lbs instead of ft-lbsI dunno. I always lube my lug nuts and still torque them to 90 ft lbs? Either way those head bolts literally came off with a 3/8" ratchet with like no effort. They should have taken a 1/2" breaker bar... only one was tough, and it blew rust out, all the others were soaked in oil.
It is normal to lube the threads when torqueing to get an accurate consistent torque across all bolts. My understanding is that the torque spec given in the repair manuals is ment to be reached with lubed threads.