Great, rustfree 2 wheel drive truck but would be crazy to spend a fortune rebuilding the lower end.
Price a new truck : any engine. Your budget should now reflect that for repairs to this one. Hell even drop in a gas engine from a junk yard.
Check for cracks in the block and heads. (just pull the oil pan and check main webs) Low miles (on the 6.2) doesn't mean anything RE: if it's cracked to death or not. I doubt the 300K block is crack free. If it actually IS it may be worth rebuilding.
1983 primitive glow plugs and control system may have fed the engine a busted glow plug. They need to be replaced with the self limiting AC-Delco 60G's anyway. This is the only inspection I would do short of actually pulling the heads.
I would drop the complete 6.2 in
without swapping heads. I wouldn't even swap the likely wore out short body injectors over. Header wrap the turbo side manifold and use two header gaskets if needed for long body injector clearance to the manifold. 6.5 heads have a different injector angle for better manifold clearance, but, So What?! Save some $$$ : labor, bolts, and gaskets. (I recall the long body injectors fit the 6.5 manifold tightly with the gaskets and header wrap to keep the heat off em, but, it's been over a decade since I did that.)
Rebuild your short body injectors with not china nozzles if you want to use them in the 6.2 heads.
Stock the 6.2 NA precups will cause more smoke and a slight power loss = about 2MPH off top speed flat out towing around ~63 MPH. The uncoated pistons will heat the engine oil up more. Unless you work the truck you won't notice.
IF you are going to pull the heads at the minimum deglaze the cylinders and drop in gapless rings. To prevent any additional main web cracking block stress I would do so without touching the main bearing bolts.
Because you are looking at it change the timing chain on the 6.2L. They stretch out by 30K miles. Best is a aftermarket gear drive if they make em at this time.