The problem you had was already there - the citric acid solution did nothing to create an issue, it simply brought it to your attention sooner than later when you thought 'everything was fine'
So long as you performed the flush with the correct proportions, then neutalized tha acid with a clear water flush before adding coolant, your flush procedure will be fine.
Mercedes used this exact process as part of factory service procedure for all their engines, regardless of metal constituency, and a specific coolant for the alloy engines which eliminates scale and slime - i.e. it never occurs.
Most notably, over the past couple of decades, I have witnessed spectacular coolant system failures, resulting in major overhauls, which stems from the longterm use of the incorrect coolant type (in MB case either a green generic coolant or a red coolant which are not to MB spec 325.x)
As engine metallurgy evolves, the coolant types also do same. This is exactly for the issues you have encountered - i.e. corrosion from dissimilar metal contact.
It matters not - not now anyway, as you're obviously going to be in for a major investigation / repair / replacement of major components.
Suggest you use ARP head studs if you're going to pull heads and do gaskets, and also make sure the entire cooling system - including heater matrix and pipes, radiator heat exchangers for oil / transmission are all in perfect serviceable condition, before you re-test the cooling system.
It's always an annoyance and the degree of frustration is usually compounded by the neglect/ignorance/abuse of the previous owners tenure. (or current owners in certain cases)
Hope you find that the damage is minimal.
fwiw, standard MB citric acid flush process is to remove thermostat, flush with clear water, mix 500g anhydrous citric acid to the cooling system water volume (approx 13-15L depending) and bring to operating temp, let circulate for 30 mins, then turn off engine, wait 10-15 min, drain flush with clear water, refill again, run for another 30 mins then drain, flush and only then add the specified coolant in the correct ratio (depending on spec 320.1 datasheet) per the engine type number. in the case of the pre-2000 models it's a 50/50 coolant to water ratio, but some later engines use different coolant types and different ratios.
I have employed the older standard (i.e. period correct matching process and fluids) for my v8 and 300TDI and in the case of the MY92 v8, it was only mildly bad when purchased. It has not developed any corrosion whatsoever since 2014 with only one drain interval in that time (which was instigated by a fan clutch failure, that destroyed the radiator).
the 300TDI I recently purchased is absolutely horrible. I have only drained and flushed it at this point, as the vehicle has only been in my custody for 5 weeks. A baseline needs to be established and an operational profile observed before going full-send on the cooling system.
As you have discovered, the process of correctly flushing the system has resulted in your discovery of an issue that has been there for a significant amount of time. These things take literally years to develop into a problem, and only the harshest of water/coolant abuse leads to premature failure..
for example - my v8 has 400,000km on it and the cooling system on the engine is all-original - including water pump. There is no sign of corrosion, and surprisingly so, when the fan clutch failed some years back, which led to this observation.
The heater matrix has failed about 12 months ago on that vehicle - common failure to age and o-rings. my vehicle was not fitted with the early soldered tank unit unfortunately, but received the plastic tank variety. Useless things they are in that installation.
Anyway, I think you're about to discover that the corrosion is in the head-gasket-water jacket mating face area, or possibly same in the block. Either way, if you are pulling heads off, you'd be wise to invest in an overhaul, unless it can be established (before you pull heads) that your compression is nice and even and high on all cyllinders. any one cyllinder that is down more than 15% from the others and I'm afraid it's all system go on a replacement / rebuild. If rebuilding, then it's time to consider budget and doing things properly versus slapping it all back together.
Stepped liners, new pistons and rings, properly machined block (i.e. properly align bored/squared up and correctly decked) which will cost a penny or ten. Might as well recondition the heads, even for more performance (friend of mine has built quite a few 5.4 stroker high performance engines which give a solid and fuel-efficient 450bhp) but this will mean deeper pockets, as many parts will be replaced. crank, rods, pistons, valves, valve springs porting etc.... lots of work and lots of $$$$.
Ultimately, this is a very very good reason why a donor vehicle makes sense - because you can get replacement engine, trans, electrics, body parts etc, for less than the cost of an engine rebuild, and you can literally do this several times, before it equals the cost of a properly rebuild high performance efficient engine.
I really do not envy you. I have experienced the rover v8 phenomenon known as 'cost-effective-operational-lifespan'
At some point, you're either going to make the decision to cough up the cash up-front and do it all now, or perhaps do this slowly over a longer time period - which ultimately costs a lot more and keeps maintaining the legendary status of "Range rover Reliability" (i.e. lack thereof) due to things always needing doing, because they should have been done much earlier, but for reasons of cost or time or both were not done.
That's just the way it is.... some things will never change. 
best of luck regardless of the path you choose.
Roads?.. Where we're going, we don't need roads...
MY92 RRC 3.9 Ardennes Green
MY93 RRC LSE 300tdi/R380/LT230 British Racing Green
MY99 D2 V8 Kinversand
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