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blaster isn't much of a lubricant. Do you know that it is seized or just trying to be careful?
Do those multiple hand-rotations with a light weight oil, for instance marvel mystery oil or transmission fluid in the cylinders. The rings will be troublesome at first and once allowed to move should get better.
The motors are relatively cheap and available, unlike heads and other random things (says the guy with a spare M127). There is little value to "matching numbers" unless you are talking about a pristine #1 condition show car. I'd swap something simple in long before rebuilding this one if you need to go that route. And if you do swap something else in, you can enjoy the car while the old power plant gets whatever refurbishment you think it needs.
You'll find plenty of coupe owners in the veteran's forum here to commiserate with you.
-CTH
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