I have had three of those so-called "MTD Engines" come through my shop with identical symptoms; Very hard or no start, very low compression, worn rings with some bore wear. All three were replaced under warranty by Craftsman without questions or hassles. They sent me a new short block and I sent back the old one for their engineers to examine and determine the cause of failure. In two of the three, dirt ingestion was the cause, and the last one, poor oil flow to the bore causing overheating and dirt ingestion. The ingestion causes premature ring wear because of poor metallurgy if the ring manufacturing process by the supplier. I do not know if it has been corrected, both the efficiency of the air filters and the ring alloy quality. I would assume so since I haven't seen any issues with them since the build dates of mid-2018.
In Summary, the failures were caused by poor air filtration and the low alloy piston rings.