Thanks for all the help guys. I got outside to the garage today to have another look at that raised lip. I started to push on it with a razor and it chunked off now so there a good chip around the bolt hole. (Attached pic)
As far as the torque wrench is concerned I don't think it's off just because I only bought it last weekend and it came with a sheet showing that it had been calibrated (still could be off though you never know) but i wouldn't bet on it.
I also checked the threads of all the bolt holes and they were like butter going in.. Except the bad one obviously lol and the bolts had no signs of over torquing so it looks like the problem is only the one hole.
I am really hoping to avoid spending money at the machine shop and was wondering if I put my helicoil in that chipped bolt hole will I be ok to put the cylinder head back on? I am hoping that's the case but if its risky to do so than I would probably just take it to a machine shop to get it fixed. I don't like taking chances. It'll Just mean my paint job is getting less and less likely lol
Anyways, thanks again for all the help so far and thanks for reading
if you over torqued the bolt you could break the bolt's shaft or strip the threads To only way to pull the top thread out by over tightening you'd have to pull up all the threads