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2016 Silverado 1600 5.3 Engine (lifter?) failure


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I have a 2016 Silverado 1500 with the 5.3l V8, 64,000 miles. A week ago I got a check engine light and misfire. I took it to my trusted mechanic and they identified that it was a cylinder 6 misfire and that there was no compression in the cylinder. 
 

They identified that it was an issue with/caused by the AFM and suggested I take it to a Chevy dealer to see what they say before deciding on any further action. 
 

The dealer has so far took 3 days to tell me that’s it’s misfiring on cylinder 6. They’re exact words were “we don’t know what the cause is but we think you need a new engine”. 
 

I’m not mechanically minded but from what I’ve found online it sounds like a lifter failure. 
 

What is the most cost effective way to fix this issue? Do I really need a whole new engine or can I just get the cylinder or lifter replaced? 
 

Thank you!

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