What made you use the 400 sand paper , I'm not sure if thats it or not , but the headgasket manufacture wants a very specific surface for the gasket , there is a surface grading system for machined surfaces , they do not want a surface thats either too soothe or too ruff .
400 grit as per the Service Manual.
You didn't remove metal at 400 grit by hand :-laf... ..... I see a patched up motor set to blow on the "For Sale" market.
I never done engine machining, but I did 20+ years industrial machining ... ... ... ... flatness and RMS are of significant importance in gasket sealing
properties.