The “engine hours” display is there because the truck detects the key presence as you were thinking.
My first step would be to call a dealer service person and ask if this a known issue and how they deal with it. If you don’t get meaningful advice there, i would try a couple of DIY things before bringing it in for troubleshooting/repair.
It sounds like a mechanical key detection switch is stuck, but I have not actually seen what the internals look like. Maybe spray some Caig Deoxit (electrical contact cleaner) in the key hole and work the key in and out in case it’s an electrical contact cleanliness issue. If that doesn’t work, next apply whatever lubricant GM recommends and work the key in and out a few times.
Good luck with it.
Carbon on valves would be the least of my worries on a light duty, 1500-series pickup with 357k provided the engine still ran halfway decently. Everything else is likely toast, on its way out, or has already been mauled to death by cheap mechanics and backyard fixes. Those kinds of trucks nickel and dime a guy to death.
I wouldn't think having the top end cleaned once or twice would be a big deal on a 5.3 but maybe it is?
When I had a Bumper subscription for a few days when I needed to run title histories on cars I was looking at, I decided to look up a few of my old/past vehicles.
My 2015 Silverado was still actively registered and it last sold in 2024 with 160k on the clock. No idea if that's on the original engine but someone's keeping it on the road or the original AFM stuff is still going.
It used 0w20. I remember feeding it Mobil 0w20 AFE for the first 30k of its life on <5k OCI's.
Edit: Just did a nationwide search on Autotrader for 2015-2025 Silverados with 5.3's and sorted by highest mileage first.
357k
352k
292k
291k
290k
277k
271k
268k
266k
259k
256k
High mileage on a modern 5.3 doesn't seem all that uncommon, but that's just searching mostly dealer ads on Autotrader. FB Marketplace has all kinds of high mileage 5.3's going back to 2007
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