You have probably answered the question. The engine being out of time causes a phenomenon known as DETONATION.
Simply stated, it is pressure or hot spots in the cylinder causing the the residual fuel/air mix, AFTER the spark has occurred and started the flame, to ignite. These two flame "fronts" meet in a sort of explosion/collision. This can be very destructive to piston ring lands and crowns as it occurs while the piston is moving upward against the not designed for pressure it causes.
Do the piston tops close to the cylinder walls have a "sand blasted" appearance? That, too, is a sign of detonation has occurred.
The fact that the damage was on one bank only would, at least to me, make it more plausible that timing was the culprit and not fuel.
Low octane or poor quality fuel can also cause detonation because of pre-ignition. That's why it's always best run at least 87 octane (sometimes not readily available in places like Mexico) to avoid this taking place. But, in this case, it would tend to effect both banks not just the one. And, the inner, hotter operating, cylinders would probably exhibit the most damage if fuel was the cause.
No, I think timing is the culprit here and there could be any number of explanations as to why only the pistons on one bank were damaged and not the other. The first one to consider is that only the one cam jumped and only altered that bank's sync. But, we're already way over my head in the failure analysis department so that is where I will end my "thesis".
Good luck with your rebuild.