2016 Sonata 2.4L: Hole in Engine Block at 115K Miles, Passed Bearing Clearance Test

I’m dealing with an issue on my 2016 Sonata 2.4L with 115K miles. It started with a cylinder 2 misfire (p0302), so I took it to the dealership. They found near-zero pressure in the second chamber and discovered a hole in the engine block. Unfortunately, this isn’t covered under warranty, and the engine passed the bearing clearance test.

The dealership says my only option is to replace the engine, quoting around $8,000, which is more than the car is worth.

The engine has a history of burning oil, and all recalls and updates were completed on time.

Has anyone else experienced something similar? How did you handle it, and what was the outcome?