The timing belt or chain moves the crankshaft which in turn moves your connecting rods and camshafts. If a bearing is stuck, or out of spec with the cam lobe it is associated with, your going to get noise, on top of partsbthat will wear quickly. Now considering that car is almost pushing 20 years, this is to be expecred- especially if it hasn’t been maintained meticulously over its entire life.
Now the good news is you may not have to rebuild your entire engine. It sound to me like that shop is taking the easy way out. Oil pressure isn’t sent from the pump, pressure is built and maintained by the tolerances between any moving parts. The space between any moving parts “squishes” the oil, forcing it through thus creating pressure, and the vacuum created by valves and your pistons helps hold and regulate this pressure.
Now if your handy,, have a service manual, and a set of digital calipers you can measure each part in that engine, find what is out of spec/ worn and replace it. Compare your measurements to what Audi engineered and states is acceptable. That will solve your problem of pressure and noise. It will be 90% cheaper on top of it. Measure cam lobes, crank lobes, pistons, connecting rods & bearings, journals, lifters, valves, main bearings, check the cylinder bore with a bore gauge.. Etc..
Id start with the top end and replace what’s out of spec there, put it back together, check for issues (pressure, noise) and work my way down