Thanks for the replies guys. PO had a LS1 installed and has no idea what happened to the liner - he has all of his work done for him. The gasket does show more exhaust leakage than the other cylinders, but not to the outside edges.
I have no idea why someone attempted to remove that liner. The part where it attaches to the head on the bottom is still there. Maybe a mechanic bent it when installing a gasket. The exhaust manifold has the cold start "flapper" welded closed.
I have read tests where the liners were removed and the head did not flow any better, dont know if they do worse either. Since this will not be a "built" motor, I am more concerned with exhaust leaks. I dont think that one port not quite equal to the others will be a noticeable performance detriment.
Heck, I dont know at this point if the motor is trash. After seeing the liner missing, the exhaust manifold "mod", the fouled brand new looking BP8Es plugs and the broken stud with goop on what looks to be a new water pump - I gotta wonder about this $100 motor! I have to at least wonder about the "mechanic" that has been working on it!
I wish I had a camera that worked - Santa did not have the budget for a new one this year.