First, I think you misread the model number. Probably should be 170084F. Second, the exhaust valve clearance is .010”. Third, I would set the valve clearance when the piston is approximately 1/4” passed TDC. After adjusting the clearance, rotate the engine through 4 complete cycles and recheck the clearance. If you don’t see the exhaust valve move just before TDC, recheck the valve clearance. If the clearance has not changed it’s time to open the engine and see if the compression release mechanism is broken. Here is the service manual for this engine.
https://www.mymowerparts.com/pdf/Te...0-8HP-THRU-18HP-CAST-IRON-ENGINES-691462A.pdf