First of all, squirrels use their nose to determine if there is an acorn weevil grub in the acorn. They preferentially seek out the grub infested acorns because of their superior nutrition. Squirrels who don’t get enough grub in their acorns are malnouished.
I suggest you eat the grubs. They have a nice texture, taste like an acorn, but milder and are nutritious for humans too. If you dry with a bit of heat, it kills the grub and gives it a nice texture. Probably best to remove the grubs before grinding and eat them right a way or store them separately.
I’ve made cornbread substituting acorn meal for 1/2 or all of the cornmeal. The 50/50 mix is reasonably like cornbread. The 100% acorn mix makes dense, slightly chewy, nutty flavored bread. I like it.