To catch up those who were curious about the head debacle that went

popped hose>test>blown head gasket>no, cracked head>buy
rebuilt>torque>pop top two threads out of #1 hole in block>test for oil
in hole no oil found,

let me say that I took the bolt and the popped-out threads by my shop
where I bought the bolts on the off-hand chance they somehow sold me
bolts too short, if such a thing were possible. You know how it is when
you're running down every clue.

The owner looked at the bolt that I brought in and saw that it had the
bolt, of course, with the captive washer and then a non-captive spacer.

He said "what's that for?" pointing to the spacer.

I told him it came off the old head, so I put it back on the rebuilt
head.

He said "Don't. There's your problem."

So, I figure that if this is true, I can leave out the spacers and have
at least five threads on the "bad hole" and seven on the other holes,
given that the bolts seem to be two threads in (judging from the two I
pulled up) right now, with the spacers installed.

Is this a recipe for disaster, or proper diesel repair?

Thanks,

Jim