In what condition should a cylinder sleeve be installed?

A cylinder sleeve should be installed primarily when the cylinder bore is gouged or excessively worn. This situation can compromise the integrity and functionality of the engine, leading to poor performance, increased oil consumption, and potential engine damage. By installing a cylinder sleeve, the engine can be restored to proper specifications, creating a new surface for the piston rings to seal against and ensuring optimal compression and efficiency.

In contrast, while replacing a cracked piston, addressing oil leakage, or resizing for standard pistons are important maintenance tasks, they do not directly necessitate the installation of a cylinder sleeve. The sleeve is specifically designed to restore the bore when physical damage or severe wear is present, making option B the correct choice in this context.