I've asked for this post to be split into a seperate one as you will probably get more answers that way .
If you didn't have the fault code P0011 then i would be saying you have stuck tappets .. i change the solenoid for the high lift first but i'm always conscious it can actually be the tappets themselves .
There is no check for these other than an expensive head strip and replacement hence we try to rule out as much as possible first .
Your issue from the fault code P0011 relates to the camshaft vario cam timing .. this is an oil fed pressure controlled system which basically moves the position of the camshaft relative to the timing chain .. i believe its plus or minus something like 25 degrees for your car .
So in essence your fault would be the car says vario cam move to +16 degrees and 5 seconds later it looks and says .. hold on your only at 12 .. that's not what i told you .. it then flags a code as it has no way of telling off the vario cam unit !
The list of items that can cause this are in the fault code i posted ..
BUT .. we now have the complication that it has had an engine rebuild so this throws in the human factor ..
In this case there is a possibility of swarf or debris in the oil ways for the head or camshaft .. also it means a removal of the vario cam is becoming more likely not only to check but also to blow out the oil ways .
I'm pretty sure there is a filter in the head as well which may be compromised .. i would need to investigate that part though as i'm not a natural engine builder ( it's not what i do these days )
Either way the first step for me would be to look at the values for camshaft control on both banks ... depending on the readings is where i would go .. it's not necessarily the Vario cam system .
We Certainly don't just throw parts at something in the hope it will fix a problem and i really hope that's not what the garage is suggesting .. no offence there young man
Diagnose first then repair .
A little light reading is enclosed below to explain how these work .. 996/997 are pretty much the same .