***Update***
Ok. So I took a while because apparently its very hard to find a 13/16" socket....
Removed the spark plugs AND.... Unfortunately found the main suspect. There was a shredded washer and there's piston damaged [emoji20]
It probably slipped inside the valve housing when removing the carb and when tried to start the engine, it slipped inside the cylinder.
Starting damage control... Any useful observations and suggestions what to do from here? (Videos of the cylinder in the links)
(This is my first classic and did only minor repairs and maintenance so I'd appreciate the extra detailed explanations)
Thanks!
View attachment 213334
https://youtu.be/PLXVYuVB3J4
https://youtu.be/RPKIQlB2Xx0