Just reading this thread and some of
@flyingging earlier posts and it looks like this engine has always used oil (quote - Mine used about 2 litres doing 20000 miles ! - 22 April 2017). If this has continued, then I'm considering that this is something that has failed much earlier in this engine's life. At what point was the first crank oil seal replaced (was this done at the cam belt change when your local independent garage realised it was leaking more than usual) and also what other engine maintenance has been done, including the fuel system?
I'm not convinced the crank will be bent, the movement is more likely to be the other main bearings wearing prematurely due to increased load allowing the crank to have more vertical movement a bit like a cantilever pivoting on No.5 main (this will most likely cause irregular wear on the big ends, small ends, piston skirts and thrust bearing). If the VW garage ever removes the sump again, I'd be asking for No.2 main bearing cap to be removed and the two bearing halves to be inspected to confirm the wear.
Something else to be aware of is that the rolled throughput yield (RTY) of engine plants is not as high as we, the consumer, would expect (I worked across the quality and engineering functions of one for 12 years) so their is a chance that your engine was subject to rework in the factory too.
The best advice I've seen on this thread is from
@DXX - once it's working, get rid! If you don't end up with a new short or long engine, you'll just be waiting for the next internal failure.