Yes it can run with a bad rod bearing, and with every revolution it is causing more damage. Any time you seize a motor you should do a full tear down and inspect everything. The hidden damage can cause even more damage to new parts. Like a pistion slapping a head can crack it, it can stretch the head bolts/rods. It can bend valves and even cause a denotation of the whole top end. (Turn it into a grenade)
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