$20,500 is still beyond absurd. If you love the vehicle and want to keep it long term, getting a 2nd opinion of the diagnosis from the GM dealer wouldn't be a terrible idea. If they confirm it is a true engine replacement job, then you could consider trade or fix avenues at that point.
I would say to look at a trusted independent shop you can trust, but with this diagnosis and quote, I have little faith in that being an option in your area.
If I were in your shoes, anything beyond the $5,000 repair range and I would be looking to trade the vehicle. This is coming from someone who sank $15k into a 2015 Suburban for an engine/transmission replacement last year. Worst financial decision I ever made.
Is the vehicle drivable? Is the noise very loud? Carvana usually isn't very picky when selling. Depending upon the results of the dealership diagnosis, dumping it on Carvana may not be a terrible idea depending on where you are with equity/payments/etc of the Yukon currently.