Interesting that the knock just "happened" to start while the car was at the dealership. Joy ride maybe? Anyway it's hard to know how the car was really treated before you got it. Too many runs up to redline without that DMD Terry always speaks of and crank whip does in a bearing and viola, knock-knock. Glad you're getting a new shortblock. Shouldn't effect value unless someone's looking for a "numbers matching" car.
Karl