Adam, Bryans idea that it was damaged during a build is correct but your idea that it was not done on the mouth of the cases is also correct.
KB02s idea of the piston being to long could be the answer and the piston has come into contact with one of the flywheels but if this was the case, both pistons would be damaged the same unless one was an odd piston.
I once got a phone call from a young guy who was having problems getting his block over his pistons. I told him to hang on and that I would be round to help him in about 1 hour.
When I got there, he was hammering like hell on a block of wood on top of the block.
He had a couple of wrenches under the pistons and across the mouths of the cases to stop the pistons going down into the cases.
He had missed putting one of the piston pin circlips back in and the pin was not all the way in the piston and was catching on the bottom of the sleeve stopping the block going over the pistons. Sure enough both pistons were cracked in the area that yours are Adam.
That motor has probably been put together by a PO with no brain.
Sam.