The bottom of your intake port is a bit mangled as well.
That can be filled with Devcon aluminum putty or JB weld and sanded, or you can grind it lower, but that will affect intake timing and case pressure.
Just make sure you go around the edges of all the ports with a small diamond or carbide ball bit when you're done. Every area that the piston crosses, and every area you modify, needs the plating chamfered into the casting. Do that to the transfer bridge areas as well. Then hand sand all the edges and run your fingers over them many times.
A very easy place to make an error. It will groove a new piston and rings in a heartbeat. I learned this the hard way.
When you say that the original piston had "bad grooving", was it similar to what you're showing? I agree that there's some foreign body in there.
One last thing, what was the piston ring end gap on assembly?
Good luck.