Turns out the service rep told me the wrong thing. It was a worn camshaft bearing. They only repaired/replaced the one bearing. Is this the right thing to do? Seems like it's just a bandaid and doesn't solve a possible poor lubrication issue. Happened at only 60k miles.
I found this:
Subject: SES Light, Blue Exhaust Smoke, Misfire, Oil Consumption and/or Fouled #1 Spark Plug - Replace Engine
Models: 2009 Cadillac Escalade Hybrid
2008-2009 Chevrolet Tahoe Hybrid
2008-2009 GMC Yukon Hybrid
with 6.0L Engine (RPO LFA)
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The following diagnosis might be helpful if the vehicle exhibits the symptom(s) described in this PI.
Condition/Concern:
Some customers may complain of an engine misfire, oil consumption, blue exhaust smoke, and/or an SES light. Upon inspection, oil deposits will be found on the #1 spark plug causing cylinder 1 to misfire and set DTCs P0300 and/or P0301. Typically, this will not occur until the vehicle has accumulated at least 8,000 miles. This may be the result of excess oil splashing onto the #1 cylinder wall due to a worn #1 cam bearing. This excess oil may eventually get into the combustion chamber and foul the #1 spark plug causing the engine misfire and SES light.
Recommendation/Instructions:
If the SI diagnosis does not isolate the cause of this concern, inspect the #1 spark plug for excessive oil deposits. If excessive deposits are present, replace the engine assembly. Before ordering a replacement engine, gather the engine unit numbers, generate an engine replacement estimate, and contact the PQC 1-866-654-7654 for pre-authorization as outlined in 02-07-30-029L.
Please follow this diagnostic or repair process thoroughly and complete each step. If the condition exhibited is resolved without completing every step, the remaining steps do not need to be performed.
Pretty much the exact problem I had. Can't tell if this is saying that if you have this problem that you get a replacement engine. My service receipt documents oil on spark plug #1.
I'll be calling the dealer tomorrow!