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OK, I think you better slow down a bit….Please don’t rip that thing apart, I don’t think there is much wrong with it.
First, the gearcase. The dark colored lube is probably the old OMC type C, which was dark. The newer OMC premium blend lube is gold in color. I don’t know if I would tear the gearcase down because of a few drops of water. Did you refill with OMC premium blend? If so, please know the gearcase will not shift without 12 volts being applied to one/both of the shift leads coming up from the gearcase. And, the gearcase will not shift unless the driveshaft is spinning. The driveshaft must be spinning to turn the oil pump which develops oil pressure to push the clutch dog out of forward gear. The control box in your picture will not work on your engine.
The compression seems normal for that engine. You do not need to use the Q plugs on this engine, the regular L77JC4 plugs will work fine. Champions notes refer to ignition systems used on much newer engines. Does the engine have spark? You will have to run a positive jumper lead to the powerpack terminal on the board so it is powered up while cranking to see if it has spark.