I had the same kickback problem with a Tecumseh engine on a Coleman Powermate generator. The kickback was so violent that it damaged the recoil starter and I had to replace it.
The problem turned out to be the stud (bolt) that the exhaust valve rocker sits on. This bolt had started to work loose, jacking up the rocker and affecting the exhaust valve clearance and timing. Once I tightened it properly and readjusted the valve lash, the engine started normally and ran like a top. I used four thousandths of an inch for the valve lash.