I have this exact saw. I also, right now, have the same problem. Won't run. I'll be working on it later today.
I have read this thread, probably don't remember all of it, so I might repeat stuff.
First, just some info specific to this saw.
No OEM parts available, so you are stuck with aftermarket.
The little yellow line, as already mentioned, is a vent. Its fine. Can't suck fuel through it, shouldn't blow into it.
The fuel pickup is a pre-molded line. If necessary, you can buy a replacement.
The pulse line is a pre-molded line. Ditto.
The intake boot is a pre-molded line. Ditto.
The saw has a 4 position run switch. Off, Run, high idle, and choke. The reason the butterfly is partly open when choked is that the saw is intended to start cold at high idle. The start procedure is to choke the saw when cold. Crank until it just fires. Move the switch to high idle and continue pulling to start. It should only take one or two pulls. Then, when you pull the throttle, it releases the high idle notch and the switch moves to run all by itself. When hot, just starting from run is usually sufficient.
First principles: You need spark, fuel, ignition, compression (and timing).
Timing is almost surely right, you can verify it if you tear down by checking the flywheel key.
You already checked compression. Even if the cylinder is scored, it should start.
You are not quite sure on fuel and spark.
Verify spark. Carb installed, air filter removed. Squirt some pre-mix into the carb. This will act like its choked. Does it fire and run for a few seconds? If so, spark is good. If not consider replacing the coil with a more modern one that doesn't require points. The points and condenser are obsolete, so don't even try to fix them. You can leave them in place or delete them. Doesn't matter. This coil fits...
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A fuel issue could be bad fuel/air issue caused by a leaking/torn intake. Intake boots can be damaged by continuous use with bad rubber isolators. You can actually tear the boot in half. I've done it. In my case, it was because I threw the saw down to avoid a running saw meeting my face while I tripped. Don't do that.

Inspect the intake boot. Hard to see, but worth a look.
If you have good spark, work on fuel. Either you have a carb issue or a fuel pickup issue. Fuel pickup issue can be two things. Either the fuel line is damaged/filter clogged or you are not getting sufficient pulse to run the carb pump. Inspect the fuel line. Remove it and look it over. If you remove it, you can blow in one end and plug the other to look for leaks.
If all good, inspect the pulse line. Make sure it is attached to the block. Make sure the carb plugs into it correctly. Look for cracks. Real hard to inspect further without disassembling a bunch of stuff.
Now we are down to case leaks (which is what I suspect I have a problem with). Can't really inspect the crank seals without tearing the saw half apart. remove the clutch assembly, remove flywheel. In my case, I didn't feel like testing, so I just replaced the crank seals. Saw started running fine. But now it doesn't. I suspect one or the other of the seals walked out of position. Only have a few hours on the saw since the seals were replaced. But, it could just be the 3rd party replacement seals were just junk. Don't know just yet.
I have not done a seal test because I didn't want to fabricate the needed carb and exhaust blank off plates. I guess I might need to do that. If so, I'll 3d print some plates. I'll cross that bridge when I need to.
This is the seal kit I used. Only used the shaft seals. As cheap or about the same price as just the two seals.
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Also, as mentioned, check the exhaust screen for blockage. I really doubt it, but you never know.
Regarding the missing ground. Won't affect the saw starting. However, it will affect the saw stopping. Might have to pull the plug wire if you get it started. Be aware and safe.