Need to be exact here.-----Is it the correct starter for that motor?----Is it a 1995 motor , as I suspect it is not.----Any more pictures / video of this motor >----Model # is ?
Are you 100% sure that is a 1995 motor ??-----Model # is ??-----My approach is to take the starter apart for inspection.----That would cost no beer tokens.----And it would tell what to do next !!
I think it will be very , very clear once motor is apart.---Good compression would be around 120 PSI.----So 70 PSI tells me a story !!----You said pistons " looked good " , where / how did you look ??
Take it apart.----Pistons on the bench and likely garbage.----Inspect every , nut , bolt and bearing.----Don't forget inspection / reseal of the gearbox.
Running a motor at 6000 RPM in neutral is a big mistake !-----Need to determine condition of this motor.----Compression test.----Post your numbers.------Or find shop with a dynamometer to see if motor is developing rated power.
I used to test coils with a ----MERC-O-TRONIC----Magneto analyzer.-----Coils are much more affordable today.----I never / rarely test today.-----Install new ones.
What is your motor doing / not doing ?-----There is very little that can go wrong with these simple carburetors.----Other than plastic carburetor bowl warping.
Helicoil is one option.-----I would make a new plug with a hammer and chisel.------Hint---Buy a 10 mm bolt.----File the head round.----Use hacksaw and fine file to put a slot in it.