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First stop driving this thing around, because if it is the head or rod bearings and you continue to keep on driving. You maybe up for a $30k+ price tag.
As ^ mentioned, its a lot of work to do either job and its a several day job for either. Rod bearings are approx. 3 days and stem seals is 2. If they are planning on doing both, realistically for ease of working they will be dropping the entire engine. As it is easier to do the stem seals outside of the car.
I would ask for a detailed plan on what exactly they are planning on doing and how.
The thing that is kinda questioning/need clarity on is the mention of ARP Studs. ARP don't make Rod bolts for factory rods. If that $7,500 has ARP studs in the conversation. That means they are planning on tearing the heads off. Not a bad thing, as it maybe needed (you smoke is white, blown head gasket/seen CO2 in water).
But again, get a detailed plan form them in writing and maybe tow it to another shop for a 2nd opinion.
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