It seems to me like it is probably a scored cylinder sleeve... Needs to be honed or maybe even resleeved and new rings... Crank bearing is probably also worn but might possibly be okay because that engine I believe is only splash lubrication so being run low on oil but not completely out of oil the crank is probably worn but okay but the top end not so much...
@@SgtJoeSmith I understand the whole concept of having to charge for labor to be able to keep afloat however what I don't understand is why anybody would pay that much labor rate on a small engine repair...