Have you ever seen a cam lobe like this?
I figured if it gets bad it will wipe out the whole lobe, but this cam had 3 lobes with the tip worn a little.
Found this while doing a cam swap
Would you run a new cam in it or swap lifters also?
Definitely need new cam and lifters. Looks like the lifter is failing. A common problem on the earlier LS platform. When you put it back together be sure to use the LS7 lifter. Their internal design is better and less prone to failure. If you go bigger cam then you need better springs also.