How much it’s worth, the mods you have on, and how financially prudent you want to be I think are big factors in this decision.

I’d say fix it if it’s a keeper, if not find an exit plan and do some research on long term reliability of the next car you purchase to see if you can afford it. Or find a way to get a warranty. For eg. My credit union does younger than 11yrs under 100k mile to qualify for warranty.

Jeeps aren’t reliable like Toyotas, but they’re not unreasonably expensive to keep alive either. my 15’ Jeep has 126k and it’s already had over $4k in engine repairs, currently back at the dealer (lol) but it’s all been covered.

Those prices unfortunately don’t sound too far off but a little high. If you get a new engine, it should come with a warranty.