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Alot of good advice here. There are a few tests you can do to isolate the problem and give yourself a better idea of what has actually failed.
Engine is already bad so don't be shy about running it so long as it has oil pressure and no timing codes.
While running unplug the coils one at a time. If the knocking becomes less audible on a specific cylinder you're looking at a connecting rod bearing or wrist pin failure on that hole.
Rev the engine up a little, if it is worse on accel it is likely connecting rod or wrist pins again. If no change or worse on decel it's likely main bearings.
If oil pressure decreases with engine temperature it is likely main bearings.
Some b58 were produced with plastic oil pumps that break, so make sure you upgrade to the metal one and make sure you replace any and all oil coolers. DO NOT FLUSH THEM!
Someone mentioned an injector leak causing ring and cylinder wall wear, I'm not sure about the b58 but any engine can experience this issue, so the borescope is a good idea. Look for the crosshatches to be worn through on the effected cylinder.
I do not recommend trying to rebuild this engine yourself.
If it was in my shop
Check for timing codes, look at data for oil level sensor. If oil level is good and no timing codes start the engine.
Unplug coils one at a time to establish if it is con rod/wrist pin or main bearing issue.
If it is found to be cylinder specific remove plugs and borescope the affected hole.
Rotate engine so that the piston is at the bottom of it's stroke and inspect the complete cylinder wall for damage. Check the top of the piston for chips or cracks that could explain oil consumption.
If nothing obvious is found here perform a complete compression test.
If compression is low perform leakdown test.
If no obvious failures and good compression suspect oil pump failure resulting in bearing failure.
Good luck!
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