Yep, that is definitely a tell tail sign of not good things.
We just went through this with my daughters 94 Cherokee. But it was so bad that just cranking over the engine with the starter produced visible bubbles in the coolant.
It cost us around $1500 to do a junk yard engine swap (DIY). But I pretty much replaced everything on it except bearings, rings, and head gaskets before I put it in. Kinda like a long block swap + a new timing chain.
At this point you need to decide if it is worth it to put the $ into it, or buy a new/used rig.
For us it went like this...
For $1500-$2000 we could buy a comparable used rig, but you never know what you are getting.
So we did the math... A used rig payment would be about $100 a month(+ full coverage insurance till it was paid off).
$1500-$2000 / $100 a month = 15-20 months. So if it lasts 15-20 months it has paid for it's self, and saved us the extra on the insurance.
As it turned out we put $1500 into it, so we were on the low side of our estimate. We also know the rig and its history, which also gave us piece of mind.