You can unshroud LS3 heads for a 4.00" bore pretty easily, so thats not an issue. Same for LS7 on a 4.065 bore.Those heads work better on a 4.100" bore, will work on a 4" but better on a bigger bore.
Anything 4" or under the Cathedral Heads work great.
LS7 Heads require a minimum 4.100" if I remeber right, so yea still want to see how this person is building this setup.
MAST Heads are mentioned so it may be the small bore LS7 Heads they make, which will go on the 4" bore. They like RPM's tho so there's that.
For the flow difference, LS3 is around 340CFM and LS7 around 360cfm. Its pretty much the slightly better valve angle and chamber on the LS7 heads that would be the benefit. To railroad yourself into LS7 manifolds for almost no real world benefit is kinda short sighted. Might as well put a 105mm throttle body and 2" headers on it with a 21x/21x 0.550" lift "Stage 1" cam.