I have used hundreds of gallons of Zinsser products. I used cover stain all of the time, before they came out with a water based cover stain. Both are great products as well as the 123 primer and BIN. Bin is thinned and cleaned up with alcohol. That is some nasty stuff to spray inside a building, but it works well. I used it on a smoke damaged house and also on a wood warehouse ceiling that I was going to paint white.
Oil based products yellow over time, if not exposed to the sun. Oil based white enamel would turn yellow in a year or two when used inside a house. Pictures hung on a light colored wall, that had oil based paint on it, would leave a dark spot behind them.
I would use oil based coverstain and then water based acrylic exterior finish. The exterior will surely handle the temps and possible moisture in and around a garage. Oil based product seal out ink, wood tannins, cigarette smoke, etc. Zinsser has an updated 123 primer that is water based just like the older 123, but they claim it covers water stains as well. I just tried it out a couple weeks ago on a concrete interior wall that had peeling paint and water damage. I top coated it with some cheap valspar paint the customer had already chosen for the rest of the interior. It looked good after I was done, but I have not checked on it again.
I won't use kilz. It is pushed at home depot like apple fans push their I phones. It also requires sanding to cover glossy surfaces, where zinsser does not. It might work OK, but I KNOW that the Zinsser products work well for me.
Water based cover stain is flat and sands very well. 123 primer has a sheen and is good for use under semi gloss and gloss paint.