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Skip NO steps. Regardless of bolt newness. Repeat each of the ft/lb torque sequences till they do not turn any further. If that takes three times or 50 times - once you run through the sequence and they no longer turn you can move on. Obviously this does not apply to the angle torque values. If you get creaking (stick-slip), STOP and take it apart. Yes chase the threads with an old bolt. And then you need to lube them with Amsoil Engine Assembly Lube. Lube the bolt threads of one bolt, run it in and out of each hole with the head off a couple times - relubing between each. Apply assembly lube LIBERALLY to each bolt and between the bolt head and top of the washer (not between the washer and the head). Make sure you use the small washer bolts in the corners and the big washer bolts in the center. You must use something like the Amsoil lube. Regular engine oil won't handle the load and will creak. Once you achieve ZERO creaking you are doing it right. Creaking means false torque readings and in all likelyhood insufficient clamping. My point was your machinist is a hack. I bought an Ra meter (used) for about $350. It's a neat little tool and a proper machine shop would own one (maybe several) in order to ensure they achieve proper specified surface roughness for any given application. This doesn't only apply to cylinder heads - lots of things need to have specific surface qualities. GD

it's so old, I wouldn't necessarily expect original axles on the front and you said it clicks so, get a green-cup axles from car-part.com or maybe LKQ w'ever, regrease and boot it if you want . (subaru boot or, maybe, beck-arnley kit) coin toss risk would be a new aftermarket axle like FEQ or maybe EMPI a real roulette wheel spin risk is typical parts store rebuilts. I'd only run one in a dire emergency.

Sorry, I forgot to mention; I've been a Soob guy working on them for 20 yrs here. Just thought I'd throw this out there for input. I'm quite familiar with the head gasket issue, belts and wheel bearings.

M12x1.25 - see if a lug nut fits on them to verify. if it's smaller than it's an M10 x 1.25 autoparts stores are almost never a good source for bolts and thread sizes. they can't size or check or find out and probably a low grade nut that'll flake to rusty pieces anyway.

I'm ok with the rusty ones getting trashed, but when I see a rust free one getting chopped up, I get pretty resentful.