A piston with a chunk out of the edge like that is usually a result of prolonged detonation. But that also appears to have a badly slipped liner, a little hard to tell from the straight-on pic, I'd like to see another shot from more of an angle. But it looks like it to me, and with those two things together, you're looking another engine. But 100K mile truck for free, an engine's not a bad price to pay. A good opportunity to throw a 4.6 in there.