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Other folks with more experience with engine internals will have to chime in but -
The pics don't look bad to me.
I've had a couple of #5 end caps off, to replace the rear cam plug. Looked just like your photos. I'd say it's varnish. I don't think it's anything that would cause the cam to seize.
I cleaned the caps that I removed with a rag and carb cleaner and brake cleaner - what I had handy. I figured better to rub a bit than to scuff the metal. Worked out well.
Maybe it had an interference cam and a valve got jammed?? Perish the thought but with what you've disassembled you can tell.
Take a look at the back end of the cam itself for the cam designation. Standard cam for a USA market '89 240 is M. The L, M, A, and B cams are non-interference. There are a few cams that turn it into an interference engine. The only Volvo-made interference ones I know of are the K + V cams but there are some aftermarket ones out there.
Lastly, I'm not sure why you'd pull the head. Assuming no head gasket leak or piston/valve issues I think you can do what you need from where you are.
I still don't see why the cam froze. Maybe a valve collision but where and why? Maybe clean it and reassemble and see if cam turns better? Try turn the crank too (24 mm), just to see. Reinstalling bearing caps needs gradual tightening, kinda like torquing a head. Read Bentley for sequence/specs.
I hope someone else will post on this before too long. I don't have enough experience on this.
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Sven: '89 245 NA, 951 ECU, expanded air dam, forward belly pan reaches oem belly pan, airbox heater upgraded, E-fan, 205/65-15 at 50 psi, IPD sways, no a/c-p/s belt, E-Codes, amber front corner reflectors, aero front face, quad horns, tach, small clock.
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