This could work, though. Swap the 350 and 4l60e trans from the Sierra into the Malibu. Friend of mine (who is a mechanical engineer and worked in his parents semi truck shop when he was a kid) swapped a 350 Vortec into his 81 Jeep Scrambler. He used the Jeep 4 speed, drivetrain, etc. I believe he bought some stuff from Advance Adapters to mate the engine to the trans and motor mounts for the 350. He had someone else (an older mechanic who was notorious for putting GM motors into Jeep’s) do the mechanical work. My buddy did all the wiring himself. He kept the fuel injection on the 350. Of course, he was no novice when it came to mechanical stuff.
Couple of things to think about. If you use the trans out of the 96, it will be electronically controlled. Engine is too, but you were going to put a carb on it, etc…
Easiest route is to get an older carbed 350 and 700r4 trans (if you want overdrive). I don’t know. Project would be beyond my skills. It better be one sweet 81 Malibu if you’re going to put this much work in it!