I have a Universal 5444 in my boat that is equipped with a compression release gadget like yours. That lever is attached to a rod with flat spots inside the valve cover. When "off" the valves operate normally, but when you pull the knob (like a choke) it pulls the lever and rotates the shaft so that the valves don't close completely, releasing compression.
It really is worth digging around to find a service manual for your engine and following the instructions there, but it sounds like just possibly your rod is turned a bit at rest. My recollection is that there are little access plates in the valve cover that you take off to check the adjustment.
It really is worth digging around to find a service manual for your engine and following the instructions there, but it sounds like just possibly your rod is turned a bit at rest. My recollection is that there are little access plates in the valve cover that you take off to check the adjustment.