You could live with it, but coolant leaks will lead to longer term problems with head corrosion and/or radiator corrosion.
I just replaced my HG for the same low compression. My old gauge was pretty poor too, just get a new one they are dirt cheap.
Turned out there was a dent in the metal ring a gasket, I might have dropped the edge of the head on it during the last assembly (done as part of a full restoration).
It did start ok, but ran badly for about 30s, and did seem down on power.
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