As noted above, running an 88mm bore has been done, it just doesn't leave a lot of room for error

The fly cut pistons tell me someone was really trying to get the most from the engine at some time in the past.
The cam marking is stock, as there is an A, B and C cam. I don’t know the markings - maybe someone can help. Is this a SSS cam possibly?
The W53 head came to Canada (and maybe the US) with both open and closed chamber configurations. It started life at 38mm intake size, so it's been massaged mildly - likely to match a twin choke carby manifold at some time in it’s history – didn’t you mention earlier that the carbs were missing?
I have seen various stampings as you noted above the intake ports on the head. I've never made heads or tails of those markings over the years, certainly something to do with production at any rate.
On the line bore question, my opinion as a machinist - I think you’d be better off finding an L20B block and crank. If your pistons are good, you can rebore the stock 87mm L20B block to match your pistons. Seems to me a better way to go, unless you already have an L20B crank kicking around. Actually, thinking about the bearing keys in the block and on the caps, it's likely easier to machine down the L20B crank journals to fit inside the L18 block than vice versa. But I'd still go L20 if it were my choice in your shoes. I machined a Z24 crank to swing in an L20B block. And I’ve seen lots of guys’ machine down L16/18 cranks to fit inside Kent motors….
Cool project, look forward to your updates.