I will replace the impulse tube. It is not hard to do but requires another tear down because it isn't very accessible. No big deal. New spark plug too.
Muffler is clear.
Couple of thoughts: When it cranks it cranks easily and runs normally for 10-15 seconds then stops as if flooded (has to sit for a while and then will restart). Pull the plug and it is wet. So it doesn't seem to me it is spark or fuel that is the problem.
So now I'm wondering if it is an internal issue. From the exhaust port the piston side and rings look great. But, maybe it is scored where I can't see it, or cracked or a hole burned in the cylinder?
Anyway, new impulse tube and new spark plug and then it goes to my nephew if still a no-go.