Scuttlebutt was that GM just stroked it for compression and did nothing else. IIRC, head gaskets were the first to go and the motor was not long thereafter due to not having enough 'beef' for the diesel configuration.
Seems that the only ones that lived were absolutely babied.
While an 'A' for effort on GM's part to move a diesel into the sedan market, am not convinced the 350 conversion was what soured the US appetite. Having a bunch of loud IDI's that spewed black clouds and were under-powered had a fair amount of impact with the US consumer. Look at it this way, at the same time GM flopped with the 350 in the US auto market, Mercedes did not have any trouble selling the 5 and 6 cylinder diesels and IIRC Isuzu and Mitsubishi had decent sales with 4 cylinder diesels in the automotive market.