OK, let’s assume that your shop is correct just for the sake of argument.
You need to do what Mel said and see if the rough running stays and the smoke clears. If this works, then I think you can count on your shop being right. If not, more troubleshooting will be required.
Next point, you mention that the shop said the valves look ok. All I can figure is they pulled the valve cover to inspect the springs on #3 to see if they were broken. You may want to call and ask for clarification.
Ok, so lets say that #3 is low. There are only 5 things that can cause this.
1. valves or seat
2. piston or ring
3. head gasket / warped cracked head
4. injector not sealed
5. big time cavitation hole
I think you can rule out #2 judging by your blow by test.
And If you don’t have a water in oil / oil in water condition, an there isn’t any bubbles coming out of the radiator while she is running at temp, I think you can rule out #5
So that leaves 1, 3, and 4. Of the options left, #4 is the easiest to eliminate. Mix up some soapy water with dishwashing liquid and smear it all around the base of that injector. While she is running see if it turns into a bubble machine. If not then you are down to #1 & #3. Normally on a 7.3, I would say it aint the head gasket. But you’ve got that LP system, so it is a large possibility.
Neither 1 or 3 is an easy cheap fix in the Colorado winter. So, I think if you get to this point there are some possible options. We could see how the board feels about
light running on 7 cylinders with the injector line plumbed into the return while you wait for warmer weather and or other engine options. I’ve got a big ass garage, but well have to see if your truck is too tall to fit.
I hear ya on trying to afford a heavy duty truck in your situation, but it is probably one of the best vehicles for a guy like you to own. You’re just going to have to lean on your IDI buds a little more, shops a little less, and maybe run on 7 while you source some used parts.
But I think you will take a bath on it if you try to sell it as is, or try to part it out while your away from home and not able to do it right.