The pins are floating in these motors, the pin is supposed to spin freely. It is technically a bearing surface.
Your rod end likely looks like that from the overheated piston. It can be fixed, not sure of the process, but they can hone it, or press in a new sleeve and machine/hone it to the proper clearance.
When I put a hole in a CP last year, my piston and cylinder wall looked exactly like yours, and my cylinder ended up being out of round from the heat in that spot. We had to sleeve it to get it back in spec.
For reference, here is a CP out of my car, this is the result of just a little too much timing for the boost I was running and 91 octane: