Oil mist issue found and solved! The LT4 intake manifold bolts go through into the head. I dont use them and never plugged them. $20 bucks for 10 M6 allen plugs and were good to go.
I reinstalled the rockers with the same GREY rtv. torqued to 22ftlbs. rotated engine 90* by hand. re torqued. rotated engine 90* by hand again. Re torqued. rotated engine 90* by hand one last time. and triple checked the rocker bolts. All looked good and I wanted to spin the motor over using the starter just to make sure.
Pulled the fuel pump fuse.
Hit the key.
It fing farted/fired for a second without the intake manifold on.
I def didn't expect that but it makes sense now that I think about it. It had fuel and spark.
I go back under the hood and inspect the rockers and noticed this.
6 of my rags were sucked into the runners and wrapped around the valve.
Mother Fer. I used thin long picks and rotated the engine around to open the valve. I got most of it out but there are a couple pieces still in there that are stuck. The only way to make sure all the pieces of paper towel are out is to basically pull the heads. I could try to put air in the spark plug holes and open the valve/pull the valve spring but at that point I might as well pull them off.