That looks like normal wear from the skirts. Also appears to have been maintained with regular oil changes. Very nice!Peeked up at a couple cylinder walls . I have no idea on the actual mileage of this engine as it was a factory replacement in the 80s and can’t trust these old odometers. Hopefully this is normal wall wear for an old motor?
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What you don't want to see is a nice polished mirror surface. How sharp is that edge at the bottom of the cylinder wall? I'd be curious to know if any FJ40 engine builders radius that liner edge to help avoid the skirts getting damaged and causing scratches.
Do you have a borescope to check out the rest of the cylinder wall? How far are you going in here haha?