Hi Lockstock
The valves and timing appear to be functioning as they should with both valves closed at TDC
On TDC the mechanical compression release has one valve slightly open on TDC,
Never adjust Valve clearances on TDC when a Compression release is used.
I would usually disconnect the coil kill switch wire just so you know it's not intermittently earthing out.
I like to swap the coil just to rule that out as having a problem under load but if you don't have
a spare you wouldn't want to spend thirty dollars for nothing if it's not the problem.
https://www.outdoorking-forum.com.au/forum/ubbthreads.php?ubb=showflat&Number=59750&page=allCheers
Max.