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The current Z06 shares it's engine with the Caddy. C8 will be no different.
The 4.2L Cadillac V8 was designed from the ground up as a high torque, low power luxury car engine. Cadillac has been begging GM for distinct engines for their own cars, and GM finally let them make their own engine. GM doesn’t have any plans to use the engine outside of Cadillac, but it may very well make it into the Escalade, CT5, CT7, XT6, XT7, and other Cadillac models. That engine’s high torque bias is not suitable for a Z06.
Even if Cadillac were to make a higher output engine than that, it would likely have a similar output to the LT4 (650/650) and be limited to the larger and/or V-Series Cadillac models.