Blown Head Gasket on 200k mile 2011 Prius. Advice on how to proceed?

Any input is appreciated. I have a 2011 Prius with 200k miles (I used to have a long 40k miles/year highway commute). In July it began rough idoling upon start-up for 5-15sec. Check engine light showed misfire codes. I took it to a mechanic that couldn't figure it out. Fast forward to last week I blew my headgasket and dumped all my coolant into engine/oil. I drove about a half mile when first getting overheat warnings.

I understand at the point the EGR system (which has never been cleaned) almost certainly got clogged and stressed the engine then blew the head gasket. Given the engine's high mileage and near certain residual damage from long term egr clog, I don't think I can just replace the head gasket, so it's Engine swap or new car.

Online local the cheapest lower milage gen3 engine I could find was $2k for 74k miles. I called a shop for a quote on labor for an engine swap and they said $1350 which I don't know if I'll find much cheaper in the chicagoland area

How do you suggest to proceed? Car's kbb is around $5k if it was running, is it crazy to spend $3500'ish on a used engine swap? Would. I need/want to get other things (water pump etc) replaced at the same time?

If I could get another 2 years out if my beloved prius I'd be happy to pay that over a new car payment. But obviously if the car becomes inoperable shortly after the large repair expense, I'd feel foolish.

Advice welcome. I'm work from home now so lower mileage, but I still need a vehicle in the suburbs. It's be cool to get a new prius prime but I don't love the idea of having a $450/mo car payment. Even CPO used prius look closer to $350/mo.

Also if I did not repair, what's the best way to sell a prius with a bad head gasket? Or am I really just looking at scrap value at this point?

 

Thanks for the reply. The battery is a good point. The car runs but is gulping coolant.

I think im leaning towards selling the car, being a 1-car household for awhile, then trying to grab a 22 prius prime around July when Toyota rebates increase and a 4k state tax rebate kicks in.

If selling, any advice on where to sell a prius with a bad head gasket? Carmax? Facebook marketplace with disclosure of course? What kinda value should I be expecting?

Thanks!