Looks like a bad fit to start

 

The bearing didn't seize but did break up a bit. The dealer mechanic that dis-assembled the engine says there is damage in other places but I'm still trying to see it.
Crank sensor full of metal?? Transmission shaft damaged?? one shift fork damaged?? All gears damaged from metal going through?? I don't see this but I'm not a mechanic either, especially for this engine. I would sure like to get a bit of $ out of this bike and trying to decide how is all. I don't think I can put this engine back together myself.

 

I'd start by asking the mechanic at the dealership that has it apart. Get a detailed quote. If it's outrageous, find a local indy and price the same work with him.

Until you get an actual number, you're just speculating.