Stripped plug, water in oil and squeak in cylinder

I'm very worried now. My 99 had a woodpecker in the motor and found it was a stripped plug that was banging up and down. Took it to repair shop and they couldn't find the problem. I drove it a while longer and it came back. Pulled the plug after finding misfire in cylinder 3 and the bottom of the plug was G O N E.
Now I found some water in the oil. I may need a new motor for a 3.4 4wd Manual. Engine had 220,000 but was running very smooth until ....I paid it off.

If you ever hear tapping in motor check your spark plugs quick to be sure you don't break a tip off into motor.