After adding up all the costs to rebuild this rifle I took another look at things. The clearance issue with the gas block was so minor I wondered if I couldn't gain a little clearance a bit.
So I did the needful and very carefully and firmly grabbed the barrel and handguard and pulled firmly in opposing directions. This is probably super mega dumb and now I have a 10 MOA rifle, but it actually worked. and I have about 4mm of clearance between the gas block and handguard. My thinking is that I probably did more to bend the handguard than the barrel, and even if I warped the barrel a touch it's likely to be a fixed amount that I can accommodate with my zero once break-in is complete. Time will tell. I'm a gambling man so I went for it. With the necessary clearance achieved and a little work with the grinder I can get the bipod on up front straddling the gas block with good clearance on both sides.
View attachment 3239130
Perfect. Even loading the bipod the gas block clearance is maintained.
A worthwhile gamble if it has a chance to save me $400 in parts and tools.