Who is rejecting them?
“Another big mistake is to take a new or reworked part and assume that it is airworthy. You DAMN sure better measure everything on it. We do this with new cylinders and reject 30% of them”
From the pdf you linked from Monty Barrett.
Ties in with what I have heard from a UK based engine shop. They overhaul all new continential cylinders before fitting them.
OK; yes. Barrett Precision used to rework a lot of brand new Lyco/Conti engines. I think they charged something like 8k to do an IO540. I would have had that done if I bought a factory new engine.