Well this certainly doesn't look good

The oil is klotz supertechniplate 80% synthetic 20% racing castor I cant remember for sure but I think it 32:1 or 40:1. I ran it a little richer than that during break-in maybe this is why I have so much carbon build up.

Would this lead to low compresion though?

you do NOT under any circumstances want to run any oil thats either castor based of partialy castor based in an aircooled motor.
 
yo u need a wiseco or atleast a forged non cut non super duper fabulous power piston ,then jet it correctly and keep using the klotz like your doing ,your definitly running too rich ,im sure youll need honed a new piston kit or poissibly it needs bored oversize, if you need any help or parts just pm a brother,alot of what yo usee is blowby from likely too much clearance