I'm not an expert, but:-
I don't think the VVti has anything to do with it, and those five-sided bolts suggest removal/dismantling that unit is a real no-no. And it might even be impossible to reassemble without factory tools/gauges etc.
As I'm sure you know, the crud under the valve cover is not in itself a reason not to start, but an possible tell-tale of other more problematic crud elsewhere e.g. piston rings.
The compression readings are pretty grim, but with a little oil into the bores, the engine starts. So, I think the dilemma is what technique do you use to unstick the rings without damaging the catalyst. After reading through this post again, I'd put my money on your problem being low compression through sticking rings.
If the engine was running, then that might be an engine flush and an extended 'Italian tune-up'. With a follow-on of shorter oil change intervals with a synthetic oil, which is very widely regarded as having a much better detergent performance. I don't think semi-synthetic is a big step up from regular mineral oil, as was suggested by an automotive engineer who did regular engine oil analysis as part of his job.
With the engine not running at the present, I think a cheap improvement (enough compression to get it running) might be through bathtub tom's 'diesel down the spark plug holes' suggestion. Most of it will end up in the sump after leaving it overnight. Diesel is underrated as a dismantling fluid.
I am very happy for someone to disagree with any of the above.
This is an interesting puzzle when it is someone else who is getting their hands dirty. My sympathies!
Did you improvise when connecting the scope leads to the car's connectors? Or did you have dedicated leads? I've never done this, my old scope sits in the garage unused!
For what it's worth, the latest instructions for Wynns engine flush tell you to add the whole tin as normal oil, then let the engine tick over for 20 minutes. Stop the engine, then drain the oil, replace the filter and refill with your regular oil.