Another head gasket or worse

TL: DR - my 2012 has 188k and the engine has been knocking occasionally upon start up. Dealer is saying either head gasket replace or worse case - engine replace ($6100). Also EGR valve for $750 (they just cleaned the ports recently and replace the intake gasket ($570) so why didn't they just do the whole job then!?)

So I took my car back to dealer after the EGR port cleaning etc didn't fix the knocking. They found codes P0301 and P0302. Found low coolant level and excessive pressure in coolant tank. Performed "block test" which "failed", indicating need for a head gasket replace and cylinder head replace but won't know for sure until head is removed, of course. Then possible a full engine replacement. It also needs brakes ($700 per axle!?)
They also mentioned 2 TSBs: T-SB-0169-16 (oil consumption) and T-SB-0027-16 (engine noise when starting after "cold soak".

Do I give up on it, use Peddle and get maybe $1k? Do I drive it a little longer, knowing I can't fix or resell it and how dangerous is THAT?! Do I find a local shop and go forth with a 2nd opinion and possible new engine? The engines available in the area are all well over 100k miles on them and available from 1300-1900 (according one shop I've been talking with).
I'm especially concerned after reading enough about 3rd gen issues to know the head gasket could fail again.
I just hate giving up on a toyota without hitting the 300k mile mark
Both kind words and harsh reality checks welcome from y'all.
Context - car was given to me by family member 2 yrs ago so besides about 1200-1550/yr in maintenance, I am not into the car too musch $$ wiser - I would not have chosen a 3rd gen but when someone hands it to you - you (I) take it!