I think you may be on the right track, valves. I had issues with a 20 hp kohler command. It has hydraulic lifters so clearance wasn't my problem. I did a compression test, passed. Did leak-down test, passed. I was told by local shop that my engine has head gasket and Valve problems. So I finally pulled the head off the cylinder that had a problem. Lapped in the valves and problem solved. So I concluded that compression and leak-down didn't really find my problem.
It sounds to me like you may have a flat head engine. If you have valve seat recession, you will have valve clearance problems. That will usually show up after engine is warm. If intake valve doesn't close all the way, it will push air backwards through carb resulting in too much fuel.
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