Dead hole. What’s the next step

With the look of that lifter and it’s out of place cup I have to think the cup was bouncing around causing an erratic compression test.
Personally I would drop a new one in there and see how that affects it before I decided it was a bad valve or broken rings.
(If this is done remember to do a 2k break in even for just the one lifter.) still no guarantees that it will break in right.