As the job of a cam follower is to follow the cam motion, don't you think that it is normal for a follower to sit higher (because the cam lifted it)? Common sense!
"...On removal of the cylinder head I was surprised to see coolant filling the various spaces between the bores,...". Where else did you expect to see coolant??!!!
If you didn't drain the block from its plug, it is normal that water has found its way in the tappet chest and inside the cylinders as you lifted the head.
Cam followers are easier to remove and replace than in other engines but it isn't necessary for this job.
What is the condition of the bores like? Wear, scratches, rust etc?