NHTSA Complaint #11490145 — 2011 JAGUAR XJ

I have a 2011 Jaguar XJL Supercharged with 65,000 miles that has a knocking noise and is in restricted performance mode. The timing chain and tensioner were replaced by a shop, but that did not fix the issue and I’ve been told there is internal engine damage. The internal engine damage has not been identified. The car itself is in excellent shape, but I don’t know how to proceed to address the internal engine damage as the shop is recommending replacing the engine with a used engine from the salvage yard, but that concerns me as I don’t know the history of the engine from the salvage yard. I've done some research and apparently this is a common issue. Does anyone have any insight on how to proceed with an Arizona recall as this is not normal? Any recommendations will be greatly appreciated. Thank you.