I'm curious about the rings not sealing to the bore issue. Mainly because I don't understand how I'd control that. Is it out of my control? Is it something that happens 9or not) during break in?
It depends on how much break-in was done before you got it. If they didn't ride it before they sold it to you, it could be as simple as you needing to do the proper break-in procedure. So the question would be, "How many miles are on this piston/rings?".
If it hasn't had any, then you are in luck, and you can do the break-in, and all should be okay.
If it has been ridden a lot on the rebuild, then maybe the rings didn't get proper break-in, and may not be sealing well. This may not be as easy to correct, but it can be corrected.
Or maybe the decompressor stil has a problem.
But, this is all still a bunch of conjecture at this point.
We don't know other possibilities, such as cams installed off the dots. We have no idea about what went on with this build. As a result, we are left to guess and test and inspect things to try and find out what is going on.