The compression hypothesis doesn't make sense to me. I don't recall ever working on a worn engine that had less compression when it got hot. It's usually the other way around - low when cold, and higher when warm. That - except one situation that comes to mind. An overhead-valve engine with the valve-lash adjusted too tight. They will get even tighter when hot - and in that case - compression will go down after warm-up.
I'm not up to speed on all the different propane systems - but there are several. I've known of many that developed "hot start" problems - and most of the problems were caused by the fuel-controls.
I just recently witnessed a guy getting screwed on a "low compression" diagnosis on his Red Seal powered forklift. I was asked to go down and help out. It is propane powered. It started getting real hard to start. The guy took it to an auto-repair shop. They told him the engine was worn out - and they then bought a new Red Seal "long block" from Caterpillar. Well, they installed the new engine, and swapped over all the external parts - propane suff, carb, etc. And guess what - no start. When they got all done, it was one of the LP controls.
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