125psi is a little low but seems reasonable given the age, and it was tested cold.
It makes no sense that it would turn over differently with a compression gauge or a spark plug. Makes me think the gauge is leaking, which might also explain the low reading (should be closer to 145 psi).
Definitely check the timing marks and chain for factory alignment and tightness if another garage says it "advanced" it the timing.
You might also want to load test the battery, as these machines don't like low voltage during startup.
After that, the diagnostics process begins. (fuses, kill switch, fuel pressure, etc ...)