Nothing making me think head gasket. It looks more to me like it needs a new timing case/block joint. If you’ve run it without glycol it may have corroded the mating faces, even with glycol they corrode eventually. You’ll need a new water pump joint and front cover/face joint. New bolts and make sure the ones that are MEAS coated (blue or green depending on where the batch of bolts came from) are replaced with coated bolts or loctited. They are in open holes and the coating is to prevent leakage. Everything to 22-24Nm and follow the sequence in the manual.
Obviously you’ll need to remove the timing gears, but to avoid losing your pump timing, take the high and low pressure pipes off and take the pump off with the timing case. Pretty sure you won’t need to remove the pump gear to get the bolts out. When it goes together, the idler gear bolts are 44 Nm and the camshaft 75 Nm, and if it’s a Stanadyne pump with a single nut, (I’ll dig the manual out to confirm) it’s about 110 Nm. Safest way to lock the engine when torquing the camshaft gear and pump gear is to take the starter off and lock the ring gear. Let Me double check those figures.
Don’t emery or scotchbrite the faces, use a bloody good scraper to clean the faces and careful not to scratch any mating surfaces.
All assuming you have a bit of mechanical knowledge, you might want to double check with your mechanic.
