2003 Honda Rubicon Engine Trouble

My rubicon started knocking and it is consistent with rpm range. It doesn’t get quite when cold or louder when hot. After taking valve covers off I noticed there was 1/16 to an inch gap in valve adjustment with the greatest being on the exhaust side. I removed the powerhead and noticed the intake valves and been making contact with piston. I can hand crank the engine and everything in lower end sounds good and is getting adequate oil. Has anyone seen this before? Should I do a valve job and try it?