It looks like one of the flyweight lugs (on the governor) has jumped out of its slot. The governor assembly is supposed to touch the underside of the flywheel when the mower is not running. As the motor runs it is pushed down. The exhaust ports look OK to me. The kind of cast aluminum muffler on your model seldom gets plugged up, it will be very obvious if it is. A coating of carbon on the inside of the muffler does no harm. A motor that old can certainly be low in compression. A new set of rings is relatively inexpensive. You should make sure the governor assembly can push down on the crankshaft easily and in doing so moves the throttle butterfly lever on the carb. This all needs to work smoothly.