What did #7 spark plug look like compared to the rest? If a cylinder is leaking water it will flash to steam during combustion. This will cause that plug to look like it's been steam-cleaned (which it has sorta).
I've never cared that much for compression test. A cylinder leakage test and a good plug read speaks volumes.
That "plug" on top of the thermostat housing with the broken hose connections is a thermostatic valve and was part of the old vacuum advance.
The exhaust manifolds don't have gaskets at the heads.
Here are the pictures of the spark plugs. The previous owner changed them about 500-1000 miles ago so they are relatively new. The gap looks high and some are grey and some have an oil build up?
I can grab a leak down test kit from autozone tonight.
Was the thermostatic valve for the AC?
Basically seeing if I should move forward with gaskets in this engine or if a new crate engine sometime this year will be a better move.